FTSE 100 Dips Amid Bank of England's Split Vote on Rate Cut
The FTSE 100 fell after the Bank of England, amidst a split vote, announced a rate cut due to inflation concerns. Sterling rose, impacting exporters. Aerospace, defense, and energy stocks declined, while InterContinental Hotels and Harbour Energy saw gains following profit reports and forecast upgrades, respectively.
Britain's FTSE 100 index slid on Thursday following a rate cut from the Bank of England, though a split decision among policymakers raised concerns about persistent inflation. Investors were left uneasy after four of nine policymakers advocated for no change, indicating potential conclusions to a series of rate cuts.
The FTSE 100 dropped by 0.7%, and the FTSE 250 saw a minor gain of 0.06%. This decision boosted sterling, subsequently pressuring export-oriented firms. Vivek Paul from BlackRock foresaw possible future rate cuts but noted ongoing inflationary pressures.
Sectoral declines led by aerospace and defense were mirrored across Europe, with significant losses for Britain's BAE Systems and Babcock. Meanwhile, InterContinental Hotels posted profit gains, and Harbour Energy upgraded its forecast, invigorating the FTSE 250.
(With inputs from agencies.)
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