Barclays expects the Bank of England to hold interest rates at its December meeting, revising its prior forecast of a cut, citing the central bank's cautious tone that emphasized uncertainty and gradual policy moves.

The central bank said that future cuts would be gradual amid higher inflation forecasts after the new government introduced spending and tax increases in its budget.

During the coronavirus pandemic, which erupted in early 2020, interest rates around the world fell to zero, or just above zero in the case of the Bank of England. Central banks worldwide dramatically increased borrowing costs from near zero during the ...