FTSE 100 Plunges Amid Bond Yield Surge and Inflation Fears

The FTSE 100 index fell by 157.01 points, a 1.5% decline, closing at 10,659.13 on Friday.

This drop was triggered by rising bond yields as investors grew concerned about the impact of higher inflation and interest rates.

Despite the Bank of England's decision to hold rates steady, analysts expect further rate hikes in the coming months.

Panmure Liberum analyst Simon French revised his forecast for 25 basis point increases at both the November and February Monetary Policy Committee meetings.

This would put pressure on consumers as household energy prices are expected to rise by 25% in January, potentially leading to second-order impacts on inflation.