FTSE 100 up 0.9
BoE decision due at 1100 GMT
Next jumps after hiking forecast

Sept 19 Reuters UK shares rose on Thursday, tracking gains in global equities after the Federal Reserve initiated a 50basispoint rate cut, while investors looked ahead to a Bank of England BoE policy decision later in the day.

London market gains were broadbased, with the bluechip FTSE 100 up 0.9, midcaps gaining 0.8 and small caps rising 0.3 by 0710 GMT.

The Fed eased interest rates by a largerthanusual 50 basis points on Wednesday, with Chair Jerome Powell citing easing inflation and a need to support the labour market.

The move boosted confidence for an economic soft landing in the world39;s largest economy and lifted risk sentiment, with global equities rising and sterling gaining against the dollar.

Across the Atlantic, UK interest rates are expected to come down more slowly than the U.S., with the BoE widely expected to keep benchmark rates on hold at 5.

Despite kicking off its easing cycle in August, UK policymakers continue to grapple with rising inflation, as evidenced by Wednesday39;s report that showed a quickening pace in inflation in the services sector.

The pace of the BoE39;s bond sales, ahead of the Labourled government39;s first budget, will also be closely watched.

The BoE probably wants to see the new UK government39;s first budget in October and that the high services inflation over 5 in August shows signs of slowing down, before a decision is made on further…