British shares fluctuate as BOE keeps its policy unchanged
On Thursday, early afternoon British stocks struggled for direction, when the Bank of England left interest rates intact and added that Brexit uncertainty can’t be good for the domestic economy.
The FTSE 100 index traded higher at 6,365.15, thus putting itself on track for its recent peak since December.
The benchmark started its journey in negative territory, then got down to its rally, reacting to the BOE’s decision as well as minutes from April’s gathering. The major bank kept its main interest rate 0.5% and stood away from changes in its 375-billion-pound asset purchase program.
Policy makers were supposed to leave interest rates exactly where they have been since March 2009. That’s what many experts expected ahead of Britain’s EU referendum on whether the UK should leave this union or not.
There’re some apparent signs that uncertainty relating to this long-awaited referendum has started weighing on some areas of activity, some decisions, even including capital expenditure as well as commercial property transactions, are being putting off pending the result of the voting.