FTSE 100 Seesawed Amid BoE Rate Decision and Political Concerns

The UK's FTSE 100 experienced volatility following the Bank of England's narrow decision to hold interest rates, hinting at future cuts if inflation eases. While tech stocks rebounded, precious metal miners and banks declined. Political uncertainty also loomed, affecting market sentiment.

The FTSE 100 index in the UK witnessed fluctuations on Thursday after the Bank of England's close vote to hold interest rates sparked brief optimism. The decision led to a 0.4% decline by 0123 GMT following a record high in the previous session.

The BoE's 5-4 split vote signaled potential future rate cuts if anticipated inflation reductions occur, presenting a dovish outlook. Senior economist George Brown emphasized the necessity for action before opportunities fade by late 2026.

Market performance was mixed: precious metal miners faced significant drops amid a stronger dollar, while technology stocks notably bounced back. Political unease over Prime Minister Keir Starmer's controversial ambassador choice added further stress to investors.

(With inputs from agencies.)