FTSE 100 Plunges as Bank of England Holds Interest Rates Amid Hawkish Outlook

The FTSE 100 index plummeted by 453 points to 10,710 after the Bank of England decided to keep interest rates steady at 3.75%, with a more hawkish outlook from policymakers adding to investor uncertainty.

Brent crude futures also fell 2.05% to $102.5 per barrel, while US West Texas Intermediate declined 1.89% to $99.98 per barrel.

On the FTSE 100, Fresnillo led the gainers with a 2.7% increase to 3,085p, followed by IG Group Holdings at 2.21% to 1,344p and Endeavour Mining at 2.20% to 4,777p.

The Bank of England's decision to pause gilt sales until April 2027 and remove bonds maturing after 2049 from active sales was also seen as a key factor in the market reaction.