FTSE 100 Drifts Down Slightly After BoE's Expected 25-basis Point Rate Cut
(RTTNews) - U.K.'s benchmark FTSE 100 pared early gains and drifted down a bit a little past noon on Thursday after the Bank of England lowered its interest rate by 25 basis points as widely expected, following the nation's inflation falling to an eight-month low.
The BoE's Monetary Policy Committee (MPC) reduced its interest rate from 4.00% to 3.75%, a near three-year low, today. The MPC voted five to four in favour of lowering borrowing costs down to their lowest levels since February 2023.
The BoE Governor Andrew Bailey said that the MPC still thinks rates are on a gradual path downward.
Investors now await the European Central Bank's policy announcement, and crucial U.S. inflation and personal consumption expenditure data.
The FTSE 100, which advanced to 9,805.65 earlier in the day, was down 2.52 points at 9,771.80 about half an hour past noon.
Whitbread rallied 5.4%. Rentokil Initial gained about 3.1% and Metlen Energy & Metals advanced 2.3%.
3i Group, Rolls-Royce Holdings, M&G, Vodafone Group, Glencore and Next moved up 1 to 1.5%.
Burberry Group drifted down nearly 2%. United Utilities Group, Bunzl, Convatec Group, GSK, DCC, Natwest Group, Entain and IAG were down 0.8 to 1.5%.
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