The FTSE 100 extended its gains to close 0.5%, or 38 points, up at 8,285 after the European Central Bank cut interest rates by quarter of a percentage point as expected.
Investec analyst Ryan Djajasaputra said: ‘The ECB Governing Council today delivered its first interest rate cut of this cycle and so joined the club of developed market central banks to have eased policy this year. The others are the SNB, Riksbank and Bank of Canada. Today’s 25bp cut in all the ECB’s key interest rates now sees the deposit rate at 3.75%, the main refinancing rate at 4.25% and the marginal lending rate at 4.50%.’
The FTSE 100 was steady this morning ahead of an expected interest rate cut from the European Central Bank (ECB).
