UK Stocks Stay Flat Ahead of BoE Rate Decision

UK investors are in wait-and-see mode as they await the Bank of England's (BoE) rate decision, which is expected to keep interest rates unchanged. The FTSE 100 has stayed flat ahead of the announcement, with energy prices a key concern for policymakers. Markets think the BoE will hold rates steady, but the real story lies in its wording, as officials may signal their readiness to hike if inflation risks flare up again.

The energy sector is the wildcard, with oil prices dipping in Asian trading helping at the margin. However, recent commodity price moves have kept the narrative alive that inflation might stick around. This has resulted in UK stocks being quiet ahead of the BoE decision, with company news doing the heavy lifting. Wizz Air will cut planned second-half capacity by 5%, while retailer Next raised its annual outlook for the fourth time.

Power generator Drax expects full-year adjusted earnings near the top end of market expectations after strong summer demand. AstraZeneca flagged almost 200 million yuan of investment to upgrade production in Wuxi, China, and Capricorn Energy agreed to revised terms for a $396 million takeover offer from DNO, a Norwegian oil and gas company.