|  Updated: 

As it happened: FTSE 100 hits new high after interest rates held

By: , , and

Add as a preferred source on Google
Andrew Bailey, Governor of the Bank of England, in a suit and tie, looking thoughtful during a press conference.
Welcome back to Morning Wire's FTSE 100 live blog

Welcome back to the Morning Wire liveblog.

The Bank of England has held interest rates at 3.75 per cent in a 6-3 split.

The City had pencilled in a hawkish hold from the Monetary Policy Committee after inflationary pressures were renewed on the latest round of strikes in the Middle East.

Megan Greene, Catherine Mann and Huw Pill were the three members that opted for a 0.25 percentage point increase to the base rate.

The Bank has been grappling with higher and more persistent inflation fuelled by a spike in energy prices brought on by the war in Iran. In a report published this week, the independent think tank NIESR said inflation would likely remain above the Bank’s two percent target until 2029 under even a benign scenario where hostilities cool and oil prices level out at $74 per barrel.

Meanwhile, the FTSE 100 is trading up 0.1 per cent after hitting its highest-ever level on Wednesday, reaching a new record of 10,971. The blue-chip index was buoyed by a four per cent rise at Rolls Royce, which lifted its targets after posting a near-50-per-cent jump in operating profit.

UK investors brushed off the fresh flare-up in tensions in the Middle East. The US launched a volley of attacks against Iran overnight, after President Trump told Fox News he would give Tehran “a beating” after it launched “surprise” attacks against US forces in the Middle East.

We’ll be bringing you the latest market updates and analysis as the day develops.

Jump straight to: