Bank of England Governor Andrew Bailey saidjackpotyantraEven if it starts to cut interest rates, the central bank can continue to shrink its balance sheet.

Bailey spoke on Thursday about the central bank's quantitative tightening plan. The Bank of England had earlier hinted that it could cut interest rates within a few months. The Bank of England has reduced its balance sheet accumulated through quantitative easing at an annual rate of 100 billion pounds by proactively selling and allowing bonds to mature.

"In my opinion, I don't think it's difficult to implement quantitative tightening at the same time when it comes to interest rates."

"For us, quantitative tightening operates in the background. We don't think it will have a big impact on the market."

"If quantitative tightening has any impact, we will notice it, we will notice it through market fluctuations, and then we will set bank interest rates to reflect this."