London's FTSE 100 hits new high after BoE signals rate cuts
Britain's FTSE 100 scaled a record high on Thursday after the Bank of England kept interest rates unchanged but investors cheered increasing indications that more policymakers are warming up to cutting borrowing costs soon.
Britain's scaled a record high on Thursday after the kept unchanged but cheered increasing indications that more are warming up to cutting borrowing costs soon.The benchmark FTSE 100 index rose 0.4% to 8,390.76 points, hitting a new peak, while the mid-cap FTSE 250 reversed course to gain 0.2%.
The pound slipped against the U.S. dollar and was last at $1.2458. The UK's benchmark 10-year gilt fell marginally and was trading at 4.15%.
The said on Thursday its Committee voted 7-2 to keep rates at a 16-year high of 5.25% after Deputy Governor Dave Ramsden joined Swati Dhingra in voting for a cut to 5%.
The central bank added a line to its post-meeting statement, saying it would be watching the next rounds of closely.
markets now see a 77% chance that BoE cut interest rates in August, compared with 72% before the rate decision.
"It doesn't really matter if it's going to be June or August for the BOE, as long as we know that the worst that the BOE will do is to keep at current level and not hike," said Julien Lafargue, chief market strategist at .
Rate-sensitive homebuilders spiked higher, advancing 0.7%, while energy shares gave a 1.2% boost as gained due falling U.S. crude inventories and an increase in Chinese imports last month.
was the biggest drag on FTSE 100 as it traded ex-dividend. Most other big banks listed on the benchmark index were trading higher.
was one of the bottom performers, falling 4.2% after posting full-year results.
rose 1.1% after the defence firm said it was on track to meet guidance for higher earnings and forecast a "further positive momentum".
Source: Stocks-Markets-Economic Times
