FTSE 100 rises 0.5% as BoE holds rates
The FTSE 100 climbed about 0.5% on Thursday as oil prices fell and bond yields dropped, alongside investors reacting to the Bank of England leaving interest rates unchanged.
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The FTSE 100 climbed about 0.5% on Thursday as oil prices fell and bond yields dropped, alongside investors reacting to the Bank of England leaving interest rates unchanged.
U.K. government bond yields and sterling fell after the Bank of England held interest rates steady at 3.75% and outlined plans to overhaul its approach to reducing its balance sheet, citing little evidence of second-round wage effects.
Britain's government bond yields fell sharply on Thursday after the Bank of England kept its interest rate unchanged and said it would pause bond sales under its quantitative tightening programme for six months.The BoE voted 6-3 to keep interest rates at 3.75%, in line with analysts' expectations…
BoE Bank Rate Market Reactions
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BOE held its key interest rate at 3.75% in a 6-3 vote, and market commentary says hawkish sentiment is hardening despite members being split.
David Rees at Schroders says the Bank of England was right to keep rates unchanged. He sees an autumn rate hike as more likely, but argues economic conditions are not yet calling for higher rates.
London’s FTSE 100 climbed about 0.4% within 15 minutes after the Bank of England kept its key interest rate unchanged.
Sterling fell to a seven-week low against the dollar and a one-week low versus the euro after the Bank of England voted 6-3 to keep interest rates unchanged at 3.75%.
The British pound held just below $1.34, near its weakest level since late July, after the Bank of England kept rates at 3.75% in a 6-3 vote, and warned that rates could need to rise if inflationary pressures intensify due to the conflict in the Middle East. In prepared remarks, Governor Andrew Bailey said the global e
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BoE MPC voted 6-3 to hold Bank Rate at 3.75%, with three members—Megan Greene, Catherine Mann and Huw Pill—dissenting in favor of a rate hike.
BOE minutes cited Dave Ramsden discussing a potential case for increasing Bank Rate, with inflation risks described as tilted more to the upside.
Minutes cite Megan Greene, Catherine Mann and Huw Pill voting to lift the Bank Rate by 25 bp (as at the July meeting).
The Bank of England kept its key interest rate unchanged, while noting future rises remain possible as energy prices continue to drive inflation.
BoE Bank Rate Actual 3.75% (Forecast 3.75%, Previous 3.75%)
BoE Bank Rate
LONDON Despite an external energy shock continuing to lift the headline inflation rate, the absence of second-round effects is expected to keep Bank of England policymakers sitting on their collective hands. The latest polls continue to forecast that the BoE s Monetary Policy Committee will vote 6 3 in favour of keepin
FTSE 100 added 0.51% to 10,742.81 by 1034 GMT after a widely expected U.S. Federal Reserve rate hike, with focus shifting to the Bank of England’s decision later in the day.
Ahead of its 1100 GMT interest rate decision, the Bank of England is expected to announce a slower pace of its bond sales program (quantitative tightening).
Market talk says the Bank of England is likely to hold its rate at 3.75% today, with a possible signal that a hike could come in November.
Market talk: MUFG’s Derek Halpenny says sterling could appreciate modestly if the Bank of England keeps rates unchanged but signals a rate rise at the following meeting in November.
The FTSE 100 gained more than 0.5% on Thursday, with investors focused on the Bank of England’s interest-rate decision following the Federal Reserve’s move the previous day. The Fed raised rates by 25 basis points, as widely expected, and signalled another increase later this year, a decision that drew criticism from P
U.K. gilt yields are modestly lower before the Bank of England decision, with investors expecting rates to stay on hold. Markets focus on the BOE vote split and the assessment of second-order inflation effects, with only a 19% chance priced for a rate hike.
Ahead of the 1100 GMT Bank of England rate decision, investors are watching the vote split and the BOE’s assessment of U.K. second-round inflation effects, Capital.com’s Daniela Hathorn said.
The British pound traded around $1.34, its weakest level since late July, ahead of the Bank of England’s highly anticipated policy announcement, while investors were also digesting the Federal Reserve’s rate hike yesterday. No change in interest rates is expected from the BoE today, but markets will be watching closely
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The dollar held near a seven-week high after the Fed raised rates and signaled more hikes, with traders shifting focus to expected responses from the BOE and BOJ to inflation pressures.
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