Bank of England's Bailey says global environment likely to stay challenging

LONDON, May 9 (Reuters) - Global economic conditions are likely to continue to be more challenging and less predictable than in previous decades, increasing difficulties for central bank forecasters, Bank of England Governor Andrew Bailey said on Friday.

"We need no reminder that the global economic environment is likely to continue to be challenging - and less predictable - than it was in the past," he said in a speech at Iceland's Reykjavik Economic Conference.

The BoE cut its main interest rate on Thursday to 4.25% from 4.5%, a decision which Bailey said would in his view have been finely balanced if it had not been for the wide-ranging tariffs announced by U.S. President Donald Trump last month.

Bailey said that the choice of new scenarios for the economy published alongside the BoE's central forecast on Thursday should not be interpreted as a signal on the path for monetary policy or the BoE's view on the balance of inflation risks.