FTSE Flat as BoE Turns Hawkish and BoJ Raises Rates

The FTSE 100 is expected to open flat on Friday, following Thursday's 1.2% rally.

This comes as investors digest a more hawkish stance from the Bank of England and another interest-rate increase from the Bank of Japan.

The Bank of England held its benchmark rate at 3.75%, but five members who voted against no change outlined circumstances in which they could support higher rates if inflation pressures persist.

Andrew Bailey said policy may need to tighten if energy prices continue to rise due to the Middle East conflict, while Clare Lombardelli said the case for raising rates is building.

In Japan, the Bank of Japan raised its benchmark rate by 25 basis points to 1.25%, the highest level in over 30 years, as policymakers responded to persistent inflation and weakness in the yen.