By Pranav Kashyap
(Reuters) -London’s blue-chip stock hit a near two-week high on Thursday, as the Bank of England kept rates on hold as expected, with traders raising the prospects of a rate cut after policymakers’ comments.
The FTSE 100 logged its third straight day of gains, ending 0.8% higher. A 0.4% dip in the pound aided the exporter-heavy index’s rise as dollar-earning firms’ profits are boosted by a weaker sterling.
The more domestically focused mid-cap FTSE 250 added 0.6%.
The BoE’s Monetary Policy Committee voted 7-2 to keep rates at a 16-year high of 5.25% ahead of a July 4 election and some policymakers said their thinking was now “finely balanced”.
Markets now see a 46.5% chance of a rate cut in August, compared with 30% before the rate decision. [0#BOEWATCH]
Governor Andrew Bailey said it was “good news” that official figures on Wednesday had shown inflation was back at its 2% target but added that it was too soon to cut…
