Bank of England Holds Rates Amid Uncertain Economic Outlook

The FTSE 100 remained largely unchanged after the Bank of England kept interest rates steady at 4.5%, highlighting uncertain economic forecasts. Market reactions included declines in bank and defense stocks, with policy impacts discussed in relation to global trade tensions and U.S. economic policies.

The FTSE 100 remained stable on Thursday as the Bank of England opted to maintain its interest rates at 4.5%, sending a cautious message amid volatile global economic conditions.

The decision by the Bank of England, affirming an 8-1 vote against a rate cut, signals hesitance to make forecast assumptions amidst fluctuating trade relations involving the U.S. The rate pause follows the Federal Reserve's stance against hasty cuts in response to U.S. tariffs.

Despite the unchanged rate, diverse market reactions included drops in banking and defense shares, while new data highlighted stagnant growth in British salaries and rising short-term inflation expectations among the public.

(With inputs from agencies.)