FTSE 100 Hits New High as Bank of England Keeps Rates Steady

The FTSE 100 index reached a high of 10,979 on Thursday morning after the Bank of England's decision to keep interest rates at 3.75%.

This move was largely anticipated by markets, with only two members of the Monetary Policy Committee voting for a rate hike.

However, the shift in voting patterns suggests that the central bank is leaning towards tighter monetary policy, with three members now pushing for higher rates.

The Bank of England's Governor Andrew Bailey cited softness in the real economy and uncertainty around energy prices as reasons for keeping rates unchanged.

On the other hand, some analysts see this decision as a 'hawkish hold' and a warning sign that the central bank is prepared to act if inflationary pressures rise.

Meanwhile, several major companies reported their quarterly results, with Rolls-Royce delivering a strong performance and raising its full-year guidance.