FTSE 100 Continues to Rise After BoE Announces Rates.
London, 21 March 2024
The Bank of England maintained the interest rate unchanged as anticipated, but the requests for a rate hike decreased, feeding speculation that the central bank would be about to cut borrowing rates
As a result, the FTSE 100 continued to rise, reaching 7860 on Thursday, a new high in eleven months. Two members decided to keep borrowing costs the same and withdrew their support for interest rate increases. The governor added that there are more positive indicators indicating inflation is declining.
The Fed's warning that three interest rate reduction this year are still on the table and the surprise rate decrease by the Swiss National Bank—which became the first major central bank to relax monetary policy—followed the perceived dovish turn.
Regarding business, Next shot up 6.5% after the retailer revealed a record-breaking profit for 2023 while holding onto its sales and profit projections. (Source: Trading Economics)