Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2024 02 01T084928Z 1 LYNXMPEK101A7 RTROPTP 4 BRITAIN STOCKS
2024 02 01T084928Z 1 LYNXMPEK101A7 RTROPTP 4 BRITAIN STOCKS

London stocks slip after BoE stands pat on rates


(Reuters) -UK stocks hit a one-week low on Thursday after the Bank of England (BoE) kept interest rates at a 16-year high and said it would need more evidence that inflation is set to fall to its 2% target before cutting rates.

The blue-chip FTSE 100 was down 0.1%, but was up as much as 0.6% before the central bank’s decision.

British government bond yields rose and the pound cut some of its earlier losses.

Shares of investment banking and brokerage services were the top losers, falling 2.7%, while rate-sensitive banks and real estate stocks slipped 1.1% and 1.6%, respectively.

The BoE said it would “keep under review for how long Bank Rate should be maintained at its current level”. Officials at the U.S. Federal Reserve and European Central Bank have been more explicit that rate cuts are on the agenda.

“It’s just pushed things to the right. The chances of rate cuts starting sooner have been diminished and the market has pushed out its expectation by a few months but the direction of travel hasn’t changed, it’s just the timing,” said Ben Russon, portfolio manager and co-head of UK Equities at Martin Currie, part of Franklin Templeton.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

The midcap FTSE 250 dropped 1.2%, adding to losses from before the BoE decision.

Both the FTSE indexes ended January with their worst monthly performance since October 2023, as investors reined in bets of aggressive interest rate cuts this year.

Wall Street closed sharply lower on Wednesday after the Fed held interest rates steady, while dashing hopes for a cut as soon as March.

Shell climbed 2.4% to a more than three-week high after the energy major increased its dividend by 4% and extended its share repurchases following a better-than-expected fourth-quarter adjusted profit.

(Reporting by Sruthi Shankar and Shubham Batra in Bengaluru; additional reporting by Shashwat Chauhan, Editing by Sherry Jacob-Phillips, Shounak Dasgupta and Shinjini Ganguli)

Recent Post: