The Bank of England has cut interest rates by a quarter point to 4.25 per cent but stressed it was not on a preset path to further reductions, as it prepares for the impact of US President Donald Trump’s trade policy.

The BoE’s Monetary Policy Committee was split three ways over the decision, which comes ahead of the announcement of a US-UK Trade deal that London hopes will limit the tariff hit on British exports.

While Thursday’s quarter-point cut had been expected, the MPC’s insistence that it would retain “a gradual and careful approach...