London stocks inch higher ahead of BoE rate decision

The currency had hit a five-month high on Wednesday. The more domestically-focussed mid-cap FTSE 250 added 0.2% by 0718 GMT.

UK's FTSE 100 index edged up on Thursday as a decline in the pound boosted shares of export-oriented firms ahead of the Bank of England's (BoE) interest rate decision.

Traders are betting on the BoE to announce a 25 basis point (bp) rate hike at 1100 GMT, taking borrowing costs to their highest level since 2008 as the central bank battles double digit inflation. The blue-chip FTSE 100 rose 0.4% as healthcare stocks and consumer staples firms including Unilever Plc surged after the pound dropped. The currency had hit a five-month high on Wednesday.

The more domestically-focussed mid-cap FTSE 250 added 0.2% by 0718 GMT. ITV Plc fell 3.3% and hit a nearly five-month low after the broadcaster reported a 10% drop in its total advertising revenue in the first three months of 2023.

Among other losers were HSBC Holdings Plc, BP Plc and Tesco Plc, dropping between 0.6% and 2% as the stocks traded ex-dividend.