FTSE 100 Down More Than 1%; BoE Holds Interest Rate

(RTTNews) - The UK stock market's benchmark index FTSE 100 is down in negative territory a little past noon on Thursday, with energy and mining stocks sliding lower, weighed down by weak commodity prices.

Investors are also digesting the Bank of England's decision to hold interest rate, and the nation's employment data.

The mood in the market is bearish despite Iran and the U.S. signing an interim peace agreement.

The FTSE 100 was down 108.98 points or 1.04% at 10,399.63 a little while ago.

The BoE's Monetary Policy Committee governed by Andrew Bailey, voted 7-2 to hold the bank rate at 3.75%.

The current rate remains the lowest since June 2023. Previously, the central bank had reduced the rate by 25 basis points each in August and November last year.

Although inflation eased to 2.8% in May, it is expected to rise later this year as the effects of higher energy prices continue to pass through. The committee observed that the policy stance required to achieve the 2% inflation target sustainably will depend on the scale and duration of the energy shock, and how it propagates through the economy.

Miners Fresnillo and Endeavour Mining lost 5.5% and 4%, respectively. Anglo American Plc is down 3.1%, Antofagasta is declining by about 2.7% and Glencore is lower by about 2.5% while Rio Tinto is down 2.4%.