UK stocks slip as BoE holds rates, Fed hawkishness dents sentiment

The UK's main stock indexes declined on Thursday, pressured by miners and financials, following the Bank of England's decision to hold interest rates steady at 3.75%.

UK's main stock indexes retreated on Thursday, pressured by miners and financials, after the ‌Bank of England held steady on interest rates, while the Federal Reserve's hawkish stance also weighed on sentiment. The BoE kept rates on hold at 3.75% as widely expected, with only two of the nine member committee voting in ‌favour of a rate hike amid persistent inflation concerns.

The U.S. Federal Reserve kept rates unchanged on Wednesday, though ‌nine Fed policymakers projected a rate hike this year. "The conditions don’t seem in place for sustained inflationary pressure. So we think the BoE will be able to avoid the kind of monetary tightening that the European Central Bank has already started to deliver ⁠and ​that the Fed hinted at ⁠last night," said Luke Bartholomew, deputy chief economist, at Aberdeen.

The blue-chip FTSE 100 index fell 0.87% to 10,416.89 points by 1345 GMT, while ⁠the midcap FTSE 250 slipped 0.8%.