London’s FTSE markets made an uncertain start to the day as investors await the Bank of England’s latest interest rate decision.
The FTSE 100 index was trading up 0.07 per cent at 7,636.32 while the midcap FTSE 250 index was down 0.51 per cent at 19,259.21.
The Bank is widely expected to leave interest rates on hold but investors will be paying close attention to whether policymakers give any signs of when interest rates might start being lowered.
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Bank of England to leave interest rates on hold as UK economy teeters on brink of recession
Policymakers are expected to drop any reference to further rate hikes, but are unlikely to signal any imminent easing in monetary policy.
The decision comes just a day after the Fed left interest rates on hold last night too. The Federal Open Market Committee (FOMC)’s statement was slightly more hawkish than many had predicted, with rate-setters saying they needed “greater confidence” inflation was falling to target sustainably.
While a hold was expected, markets were hoping policymakers would prepare the ground for a March rate cut. However, speaking to reporters after the decision, Fed chair Jerome Powell said March rate cuts was not the “base case” scenario.
This prompted US markets to fall sharply, with the S&P 500 closing 1.6 per cent lower and the Nasdaq index ending over 2.2 per cent lower.
In London this morning Shell rose 1.3 per cent.
The oil giant’s profit beat analyst consensus even though it fell 29 per cent as a result of asset write-downs and a slump in oil prices.
Adjusted earnings came in at $28.3bn for the full-year 2023 period, against $39.9bn in 2022, while for the fourth quarter the firm collected $7.3bn against $9.8bn a year prior.
Elsewhere BT shares were up 1.8 per cent after it reported that it had added 432,000 Openreach customers in its most recent quarter.
Britain’s largest telecoms company said it achieved revenue of nearly £15.8bn in the first three quarters of 2023, up from £15.3bn in 2022.