The Bank of England should keep interest rates on hold until upside risks to inflation - including those posed by the election of Donald Trump as the United States' next president - dissipate, a top BoE official said on Thursday.

The central bank said future cuts would be gradual amid higher inflation forecasts after the new government introduced spending and tax increases in its budget.

Markets await US inflation data for clues on Fed rate cuts. US inflation picks up to 2.6% 13:41 US inflation is bang in line with forecasts: the headline annual rate has picked up slightly to 2.

High inflation in Britain has not been vanquished and there is a risk that some drivers of price growth could be heading upwards, Bank of England interest rate-setter Catherine Mann said on Wednesday.

The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the U.K. fell below its target rate of 2%

The Bank of England on Thursday said it was cutting its key interest further after UK inflation hit a three-year low and signalled more reductions, easing pressure on borrowers.

Bank of England policymaker Catherine Mann said the central bank should keep interest rates on hold until upside risks to inflation - including those from the United States following the election of Donald Trump as the next president - dissipate.