The Bank of England will need to look beyond the temporary inflation boost from last week's budget but keep a close eye on anything that might add to longer-term price pressures, BoE Chief Economist Huw Pill said on Friday.

The BoE estimated on Thursday that the budget would add about 0.5% to inflation at its peak in around two years' time, but Governor Andrew Bailey said he did not expect it to heavily affect the central bank's path of interest rate cuts.

"To a large extent, we will have to look through and interpret (budget measures) in a way that allows us to have a good sight of these underlying and more persistent components of inflation that really have to be the focus of what's driving our policy decisions," Pill said in a BoE briefing for businesses.

(Reporting by Andy Bruce, writing by David Milliken; Editing by Suban Abdulla)