FTSE Dips After Hitting New High Amid BoE Hawkish Hold

The FTSE 100 index closed down 0.1% at 10,897.27 on Thursday after reaching a fresh intraday high of 10,979.60. The Bank of England kept interest rates unchanged as widely expected, but three policymakers voted for tighter monetary policy amid concerns over energy prices and persistent inflationary pressures.

The nine-member Monetary Policy Committee voted six to three to maintain the base rate at 3.75%, with Megan Greene, Catherine Mann, and Huw Pill preferring a 25-basis-point rise to 4%. The Bank highlighted that crude and refined energy prices remain volatile and above pre-conflict levels.

Patrick Munnelly of Tickmill Group noted that while the BoE decision was no surprise, the vote split matters. 'Support for tighter policy has now risen steadily from one member in April, to two in June, and three in July,' he said.