FTSE 100 leaps as traders eye probable BOE interest rate cut
On Thursday, British shares edged up, with broad-based revenues arriving ahead of what could be the first interest-rate cute by the BoE for seven years.
The FTSE 100 leapt 1%, trading at 6,733.28 with all sectors trading higher, led by financial, gas, oil and mining stocks.
Market participants will keep an eye open on the Bank of England policy makers, who are expected to unveil their policy decision a bit later today. Apparently, markets have overwhelmingly priced in the probability that the major bank, led by Mark Carney, will decrease the benchmark rate to a record minimum of 0.25% from 0.5%. By the way, the BoE last dropped its key rate in March 2009 and it has been held at 0.5% since that time.
Among banking stocks, Lloyds Banking Group PLC gained 1.3%, Barclays PLC surged 1.2%, while Royal Bank of Scotland PLC acquired 1.5%.
Meanwhile, the British pound was buying $1.3222, while on Wednesday it was worth $1.3202.