London stocks fall after Fed39;s hawkish stance
BoE rate decision eyed
Miners drag FTSE 100
FTSE 100 down 0.5, FTSE 250 off 0.6

Sept 21 Reuters London stocks slid on Thursday as U.S. Treasury yields climbed after the Federal Reserve signalled elevated interest rates for longer, while investors braced for the Bank of England39;s BoE key monetary policy decision due later in the day.

The bluechip FTSE 100 index was down 0.5 by 0844 GMT.

The Fed held its interest rates steady on Wednesday, but stiffened a hawkish monetary policy stance that its officials increasingly believe can succeed in combating inflation.

Asian stocks tracked the lacklustre mood in U.S. peers on Wednesday after the Fed revised its economic projections.

The BoE on Thursday will announce whether it is halting a run of interest rate hikes that stretches back to December 2021, after data released on Wednesday showed a surprise fall in August inflation.

Traders are betting on a 43 chance for the BoE to hold rates steady at 5.25.

The sterling has been losing steam against the U.S. dollar and hit its lowest levels since early April on Thursday.

If sterling continues to fall which is the most plausible outcome if the BoE softens its policy stance more than necessary today inflation in Britain will become harder to contain, Ipek Ozkardeskaya, senior analyst, Swissquote Bank said in a note.

As a result, a maybe last 25basis point rate hike is on todays menu, Ozkardeskaya added.

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