Yahoo Finance FTSE and US markets fall as Bank of England halts rate hikes
How major markets are performing on Thursday
Markets in London and across Europe were mixed on Thursday, as the Bank of England followed the US Federal Reserve in leaving its key interest rate on hold.
The FTSE (^FTSE) had lost 0.5% by the end of the day, having declined earlier in the session. The Cac in Paris (^FCHI) moved 1.5% lower and the Dax (^GDAXI) was down 1.2%.
Online grocer Ocado weighed on the FTSE, falling more than 17% by the close in London.
Meanwhile, the FTSE 250 (^FTMC), which tracks more domestically-linked stocks, fell 0.4%.
The decision today ends a spate of Bank of England rate hikes designed at bringing inflation back to its 2% target. The current rate, 5.25% — which is a 15-year high — is the result of 14 consecutive rises.
“We are starting to see the tide turn against high inflation, but we will continue to do what we can to help households struggling with mortgage payments," said Chancellor Jeremy Hunt.
“Now is the time to see the job through. We are on track to halve inflation this year and sticking to our plan is the only way to bring interest and mortgage rates down.”
Meanwhile, the Fed kept interest rates on hold on Wednesday, following signs of easing inflation across the pond. The move came with a warning, though, as comments implied further action may be needed down the line and it could be well into 2024 before rates come down again.
On Thursday, the S&P 500 (^GSPC) was down 0.9% by the middle of the session, the Dow (^DJI) fell 0.5% and the Nasdaq (^IXIC) was down 1.1%.
Read more: Bank of England halts latest interest rate hikes
UK inflation dropped from 6.8% in July down to 6.7% in August, marking the sixth straight decline in the headline rate.
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