FTSE 100 flat ahead of BoE rate decision, Unilever falls
The FTSE 100 stock index was flat on Thursday, ahead of what is expected to be the Bank of England's biggest interest rate hike since 1995 in its efforts to fight red-hot inflation, while losses in retail giant Unilever also weighed on sentiment. Around 1100 GMT, the British central bank is expected to raise its key lending rate by 50 basis points to 1.75%, its highest level since late-2008 at the start of the global financial crisis.
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The FTSE 100 stock index was flat on Thursday, ahead of what is expected to be the Bank of England's biggest interest rate hike since 1995 in its efforts to fight red-hot inflation, while losses in retail giant Unilever also weighed on sentiment.
Around 1100 GMT, the British central bank is expected to raise its key lending rate by 50 basis points to 1.75%, its highest level since late 2008 at the start of the global financial crisis. After the BoE lowered its GDP outlook in June from its meeting in May, analysts now focus on whether it has reduced these expectations further.
"The BoE is likely to have been surprised by the rapid rise in inflation in May and June too, so it will probably have to adjust its CPI projections to the upside, which would be an argument in favor of today's large rate step," said Antje Praefcke, forex and emerging market analyst at Commerzbank. The blue-chip FTSE 100 index was flat at 7,446.34, while the domestically focussed midcap index was up 0.6% at 20,131.45.
Even as recession fears mount across the world, UK stocks have fared better than their global peers so far this year. Shares of Unilever Plc fell 1.4%, weighing the most in the FTSE 100 after Ben & Jerry's independent board said the company had frozen its directors' salaries last month as a pressure tactic.
Rolls-Royce dragged down the aerospace and defense sector, shedding 4.7% even as the aero-engineer said it would see its squeezed operating profit margin improvement in the second half. Gold miner Centamin Plc rose 2.2% after it reported a 4% rise in its first-half revenue supported by higher bullion prices.
Medical technology company ConvaTec jumped 6.4%, leading gains among midcaps after reporting higher first-half revenue.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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