The U.S. Federal Reserve is no longer expected to cut interest rates at its December policy meeting, Nomura has said, making it the first global brokerage to signal a pause in the central bank's rate-cutting cycle in the wake of Donald Trump's election win.

The hike marks a sharp increase from the 1.7% rise recorded in September and exceeds the 2.2% forecast of economists polled by Reuters.

The annual rate of inflation rose above the BOE target in October, a move that was expected by policymakers, who have said they would cut their key rate only gradually.

The Bank of England seeks to control inflation – the speed at which the cost of goods and services are rising – by raising and lowering the cost of borrowing via its base inte