FX.co ★ UK Stocks Inch Up After BoE Hold

The FTSE 100 advanced 0.5% to 10,750 on Thursday after the Bank of England left interest rates unchanged, in line with City expectations. Three members of the Monetary Policy Committee voted for a rate increase, also as anticipated, as policymakers focused on the effect of higher energy prices on underlying inflation.

Equities were further supported by a slower-than-expected reduction in the BoE’s balance sheet, which underpinned both stocks and Gilts. Financials led the gains, with HSBC and Standard Chartered each rising more than 1%, while 3i climbed nearly 2%.

SSE added more than 2% as wholesale natural gas prices declined for a second consecutive session. Meanwhile, Next rose 1% after highlighting a modest upgrade to its sales outlook and additional cost savings, particularly in warehousing.