The Bank of England could move more aggressively to cut interest rates if inflation pressures continue to weaken but conflict in the Middle East could push up oil prices, Governor Andrew Bailey said.

The pound fell sharply Thursday after Bank of England Governor Andrew Bailey said the central bank could be more aggressive in cutting borrowing costs if inflation remained benign.

LONDON (Reuters) -The Bank of England should move only gradually with cutting interest rates, Chief Economist Huw Pill said on Friday, a day after Governor Andrew Bailey was quoted as saying the BoE might move more aggressively to lower borrowing costs.