17th Sep 2026 12:14
(Alliance News) - Stock prices in London were higher at midday on Thursday, as the Bank of England left interest rates unchanged but warned that risks to the inflation outlook had shifted further to the upside amid elevated energy prices.
The FTSE 100 index was up 55.44 points, 0.4%, at 10,733.47. The FTSE 250 was up 150.93 points, 0.6%, at 24,221.93, and the AIM all-share was up 0.40 points, 0.1%, at 788.76.
The Cboe UK 100 was up 0.5% at 1,068.48, the Cboe UK 250 was up 0.6% at 21,020.19, and the Cboe small companies was up 0.3% at 18,593.87.
The Bank of England left Bank Rate unchanged at 3.75% on Thursday, as expected, with three policymakers voting for an increase, also as anticipated.
The Monetary Policy Committee voted 6-3 to maintain Bank Rate at 3.75%, with three members preferring to raise it by 25 basis points to 4.00%.
The BoE also said it plans to sell GBP20 billion of gilts a year over the next eight years, while GBP120 billion of long-dated gilts will be held to maturity, as it pauses gilt auctions and reviews selling gilts directly to the government.
The central bank said the prolonged conflict in the Middle East had contributed to further increases in crude and refined energy prices since its previous meeting, with prices remaining volatile and above pre-conflict levels.
UK consumer price inflation accelerated to 3.1% in August, and the BoE said it is likely to rise further over the coming quarters. It said monetary policy is being set to ensure inflation returns sustainably to its 2% target as the economy adjusts to the energy shock.
The central bank said there had so far been little evidence of material second-round effects in price and wage-setting. However, it warned that the risk of such effects increases the longer elevated energy prices persist or remain volatile.
The committee said it "stands ready to act as necessary" to ensure CPI inflation remains on track to meet the 2% target over the medium term.
The pound was quoted at USD1.3378 at midday on Thursday, lower than USD1.3449 at the London equities close on Wednesday and USD1.3403 shortly before the BoE decision.
Against the euro, sterling fell to EUR1.1651 from EUR1.1658 a day prior and was also lower than EUR1.1678 ahead of the decision.
In European equities on Thursday, the CAC 40 in Paris was up 0.2%, while the DAX 40 in Frankfurt was up 0.5%.
The euro stood at USD1.1477, lower than USD1.1537 late Wednesday. Against the yen, the dollar was quoted at JPY155.63 versus JPY155.09.
Eurozone annual inflation accelerated in August, although by slightly less than initially estimated, data from Eurostat showed.
The annual consumer price inflation rate accelerated to 3.2% in August from 2.9% in July, below Eurostat's flash estimate of 3.3% published on September 1.
Energy prices jumped 14% annually in August, accelerating from 10% in July and in line with the flash estimate.
Prices for processed food, alcohol and tobacco rose 0.5% year-on-year, slowing from 0.7% in July and below the flash estimate of 0.6%.
On a monthly basis, consumer prices rose 0.4% in August, as expected, up from 0.2% in July.
Back in London, Computacenter led the FTSE 100, up 1.8%, followed by Halma, up 1.7%, and Rolls-Royce Group, up 1.5%.
At the other end of the blue-chip index, Marks & Spencer Group fell 1.8%, while JD Sports Fashion and Reckitt Benckiser Group were both down 1.4%.
On the FTSE 250, Foresight Group Holdings fell 5.1%, and Unite Group lost 3.5%, as both stocks traded ex-dividend.
At the top of the FTSE 250, Bytes Technology Group jumped 11% after lifting its annual guidance on expectations of a "strong" first half.
Man Group rose 5.8% after UBS upgraded the investment manager to 'buy' with a 365p price target.
Galliford Try Holdings gained 4.9% after reporting growth in annual earnings, while Ocado Group climbed 3.6% after Berenberg initiated coverage with a 'buy' rating and 330p price target.
Helios Towers rose 3.8% after extending its share buyback programme by USD100 million to up to USD175 million.
Stocks in New York were called higher. The Dow Jones Industrial Average and S&P 500 were both called up 0.8%, while the Nasdaq Composite was called up 1.0%.
The yield on the US 10-year Treasury was quoted at 4.99%, widening from 4.97%. The yield on the US 30-year Treasury was quoted at 5.33%, narrowing from 5.34%.
Oil prices pulled back for a second consecutive day. Brent was quoted at USD103.63 a barrel at midday on Thursday, lower than USD104.54 late Wednesday.
Gold was quoted at USD4,310.26 an ounce at midday on Thursday, lower than USD4,345.07 on Wednesday.
Still to come on Thursday's economic calendar, the US releases weekly jobless claims and building permits, while Canada publishes producer price data.
By Eva Castanedo, Alliance News senior economics reporter
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