FTSE 100 up 0.3, FTSE 250 up 0.2

Aug 30 Reuters UK39;s main stock index hit a threemonth high on Friday, set to eke out gains for the topsyturvy month, with bank shares in the lead ahead of crucial global economic data that could shed further light on the pace of rate cuts by top central banks.

The bluechip FTSE 100 index was up 0.3 as of 0706 GMT, on track for its second straight monthly gain and third consecutive weekly advance.

The domesticallyfocused midcap FTSE 250 rose 0.2, but eyed a monthly decline.

The pharmaceutical sector was the top monthly sectoral gainer, while personal goods shares were the worst hit.

On the day, lenders Close Brothers Group and HSBC steered the banks index, rising 0.8 to the top of the bourse, while telecommunication and media stocks were the biggest laggards.

August marks a turbulent month for financial markets globally as concerns over a likely U.S. recession rocked risky assets, with unwinding of yenfunded carry trades also elevating market volatility. However, relief trickled in eventually as the Federal Reserve hinted at an imminent interest rate cut.

The focus now turns to the U.S. inflation report, which is keenly monitored by the Fed, and the euro zone39;s flash inflation data, both due later in the day.

As for monetary policy bets, the Bank of England is seen keeping interest rates high for longer than in the U.S. and the euro zone. While the Fed and the European Central Bank are expected to cut in September, the BoE is…