Next hits record high on strong annual profit
Bank of England rate verdict at 1200 GMT
FTSE 100 up 1.1, FTSE 250 adds 1

March 21 Reuters London equities opened higher on Thursday, as investors welcomed the Federal Reserve39;s decision to maintain its stance of three rate cuts for 2024, while shifting their focus to the Bank of England39;s monetary policy update.

The internationallyfocussed FTSE 100 was up 1.1 as of 0900 GMT, its highest level since May 2023. The domestically oriented FTSE 250 also climbed nearly 1.

The Fed kept borrowing costs unchanged on Wednesday and projected as many as three interest rate cuts this year, alleviating investor concerns about high interest rates and prompting U.S. stocks to close higher.

Most sectoral indexes advanced, with ratesensitive real estate investment trusts, real estate stocks among the top performers, each gaining nearly 2.

Precious metal miners added to gains on the resourceheavy FTSE 100, rising 4.1, as spot gold prices hit fresh record highs.

An environment where the Fed projects rate cuts as well as economic growth is considered pretty bullish not only for risk assets, but also for other assets such as gold, said Patrick Armstrong, chief investment officer at Plurimi Wealth.

Focus now pivots to the BoE39;s interest rate decision, due at 1200 GMT, where it is widely expected to hold rates at 5.25, a day after data showed inflation fell to its lowest in almost twoandahalf years.

The rate outcome itself will not…