London Market Close
The FTSE 100 slipped on Thursday after the Bank of England kept interest rates unchanged in a narrow vote while investors digested numerous earnings reports from major blue-chip companies.
Market Performance
- FTSE 100 closed down 41.30 points (-0.4%) at 9,735.78.
- FTSE 250 ended 189.35 points lower (-0.9%) at 21,905.03.
- AIM All-Share decreased by 3.09 points (-0.4%) to 753.13.
- Cboe UK 100 dropped 0.6% to 969.72.
- Cboe UK 250 fell 1.2% to 18,935.03.
- Cboe Small Companies declined 0.5%, closing at 17,896.75.
Bank of England Rate Decision
The Bank of England kept rates steady in a knife-edge vote. Governor Andrew Bailey’s decision was pivotal in the outcome.
Five members of the nine-strong Monetary Policy Committee, including Governor Bailey, voted to maintain the status quo. Bailey was supported by Clare Lombardelli, Catherine Mann, Megan Greene, and Huw Pill.
Four members—Sarah Breeden, Swati Dhingra, Dave Ramsden, and Alan Taylor—favored a quarter-point rate cut.
Dhingra and Taylor argued the policy was already "significantly over-restrictive, which could unduly damage activity and possibly lead to an undershoot in inflation in the medium term."
Others emphasized the risks of persistent inflation that might require prolonged monetary tightening.
Governor Bailey noted that overall risks to medium-term inflation had recently become more balanced but saw value in waiting for additional evidence.
Summary: The FTSE 100 and related indices declined following the Bank of England’s decision to hold rates steady amid divided opinions within the Monetary Policy Committee on inflation risks and economic impact.