Bank of England Governor Andrew Bailey told CNBC Thursday that Britain is still moving forward despite the country being the first to sign a trade deal with the United States under President Donald Trump's controversial tariff regime.

“Tariffs and trade conditions inject more uncertainty into this situation…there is more uncertainty now than in the past,” Bailey told CNBC in an interview.

He continued: "In this sense, the UK's trade agreement is very welcome. But the UK is a very open economy."

He said this means that the impact of tariffs on the UK economy stems from not only trade relations with Washington, but also from the United States and other parts of the world.

“I hope what we see in the UK trade will be the first of many, and that will be repeated by a series of trade agreements, but we certainly have to see where this happens and where it actually ends up.”

“Because, of course, we are looking for a higher tariff level than before.”

According to CNBC Tally, the term “uncertainty” was used 41 times in its 97 pages, up from 36 in February.

The UK central bank cut interest rates by a quarter percentage point on Thursday, with its key interest rate dropping to 4.25%. The decision is highly divided among the seven members of its monetary policy committee, with five votes cut at 25 basis points, two votes to keep interest rates, and two votes would lower 50 basis points.

Bailey said that while some analysts believe interest rate decisions are much more than expected — in other words, tending to hold interest rates higher than rapid tax cuts, he was not surprised by the closed vote.

"This reflects two aspects, both sides have risks," he told CNBC.

“We may get a worse demand weakness than we expected and then can turn the outlook for inflation weaker than we expected.”

"On the other hand, there is a risk, we can gradually pass the inflationary effect in the inflationary effect, such as in wages and energy, while the "economic supply capacity is weak."