UK's midcap index at record high ahead of Bank of England rate call
EWU•Britain’s FTSE 250 hit a record high and the FTSE 100 rose 0.5% to 10,888.64 points ahead of the Bank of England’s policy decision. The central bank was widely expected to raise rates by 25 basis points.
1. UK shares rise
The FTSE 250 climbed 0.6% to an all-time high on Thursday, while the FTSE 100 gained 0.5% to 10,888.64 points by 1034 GMT, ahead of the Bank of England’s policy decision. Banking stocks rose 1.3%, with HSBC up 1.2%.
2. Sector moves diverge
Precious metal miners rose 5% as gold reached a two-week high. BT Group gained 3.5% after beating second-quarter revenue estimates, while BAE Systems fell 4.1% and Hikma Pharmaceuticals dropped 6% after lowering the higher end of its annual profit forecast range.
3. Rate expectations
The Bank of England was widely expected to raise rates by 25 basis points, its first increase in three years. British inflation was 3.5% in September, above the bank’s 2% target.
