BoE hikes by an expected 25 bps
Banks snap two days of gains
Informa down after MS downgrade
FTSE 100 down 0.8, FTSE 250 off 0.1

March 23 Reuters The exportoriented FTSE 100 closed down on Thursday as the pound gained after the Bank of England raised its main lending rate by 25 basis points.

The FTSE 100 ended 0.8 down, as the pound rose 0.5 hurting shares of firms that benefit from exports.

The FTSE 350 Food, beverage and tobacco index housing British American Tobacco Plc fell 2.7 while energy stocks shed 1.6.

The BoE raised interest rates for the 11th consecutive time, and said it expects the surge in British inflation to cool faster than before, despite a surprise jump in consumer prices on Wednesday.

The central bank was not due to hold a quarterly news conference by Governor Andrew Bailey and other officials on Thursday, although he is scheduled to make a speech on Monday.

No surprise today from the Bank of England with a 25bps rate hike, following the bumper inflation data yesterday, said John Leiper, chief investment officer, Titan Asset Management.

We think there is more to come to combat inflation, even as the bank grapples with financial stability concerns and rising recessionary headwinds.

Banks fell 2.4, snapping two straight days of gains.

The idea of another rate hike was not seen as being friendly in terms of banks because right now your concerns are about easier credit conditions, said Steve Sosnick, chief strategist at Interactive Brokers….