(Reuters) – UK stocks fell on Thursday, weighed down by bank stocks, as the Bank of England kept interest rates unchanged but warned against assumptions that it would cut rates further in the coming meetings amid global economic uncertainties.
The blue-chip FTSE 100 was down 0.3%, while the domestically focused FTSE 250 index fell 0.2%.
The BoE held interest rates at 4.5%, as expected, and noted the escalation of global trade tensions kicked off by the United States. Only one out of the 9 members of the Monetary Policy Committee voted for a quarter-point rate cut.
“The Bank has a very challenging economic environment with growth having slowed but inflation pressures remaining elevated,” said Luke Bartholomew, deputy chief economist at Aberdeen.
“This will keep the Bank on its ‘gradual and careful’ cutting path for now, with another cut likely in May.”
Traders pared back their bets on BoE rate cuts slightly, expecting…
