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.

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 Bank of England has cut interest rates for the second time this year, in good news for mortgage-holders and other borrowers. Policymakers at the Bank of England opted to reduce interest rates to 4.