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Dec 13 Reuters The UK39;s FTSE 100 rose on Wednesday as the pound eased following data showing the UK economy contracted in October, while markets await the Federal Reserve39;s rate decision later in the day.

The bluechip FTSE 100 index gained 0.4 by 0901 GMT, with major dollar earners like AstraZeneca up over 1. The more domesticallyfocussed FTSE 250 midcap index also rose 0.4.

Bucking the trend, heavyweight energy stocks dipped 0.4 amid declining crude oil prices.

The pound eased 0.3 after official data showed Britain39;s economy shrank in October, raising the risk of a recession and testing the Bank of England39;s BoE resolve against signalling cuts to interest rates.

This October print is probably in line with the Bank39;s soggy forecast, and hence adds to a growing dovish narrative, said Elizabeth Martins, senior economist at HSBC.

If the BoE39;s hawks wanted to push back on market expectations of rate cuts starting midnext year, the data are giving them very little work with.

The BoE, along with the European Central Bank, will be releasing their rate decisions on Thursday. Both are expected to hold rates steady.

Separately, Goldman Sachs lowered Britain39;s 2023 economic growth rate forecast to 0.5, from its previous outlook of 0.6.

Later in the day, the Fed will announce its monetary policy decision, with the consensus…