BoE hikes bank rate by 50 bps, biggest hike since 1995
Unilever down as Ben Jerry39;s says it froze directors39; salaries
Medtech company ConvaTec leads gains among midcaps
FTSE 100 up 0.3, FTSE 250 adds 0.6

Aug 4 Reuters The FTSE 100 stock index hit session highs on Thursday, while the pound weakened after the Bank of England raised interest rates by the most in 27 years in its effort to combat redhot inflation.

The British central bank39;s Monetary Policy Committee voted 81 for a half percentage point rise in Bank Rate to 1.75 the highest level since late 2008.

The Bank of England has clearly decided that now is the right time to bring out more firepower and raise rates by 0.5 for the first time since 1995, said Paul Craig, portfolio manager at Quilter Investors.

It has clearly taken note of what the Federal Reserve is doing in the U.S. and feels it could be running out of time to grapple inflation and get it under control.

The BoE39;s move weakened the pound and helped lift the bluechip FTSE 100 index, which rose 0.3 after trading in a narrow range for most part of the morning, while the domestically focussed midcap index was up 0.6.

Even as recession fears mount across the world, UK stocks have fared better than their global peers so far this year.

Shares of Unilever Plc fell 0.5 after Ben Jerry39;s independent board said the company had frozen its directors39; salaries last month as a pressure tactic.

RollsRoyce dragged down the aerospace and defence…