Financial and Property Stocks Gain on Rate Cut

FTSE 100 reached the highest level in one year following the Bank of England interest rate cut. Financial and property stocks were among the biggest gainers on the day

Karen Kwok 5 August, 2016 | 2:30PM
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UK stocks hit a one-year high on Friday after the Bank of England’s first interest rate cut in more than seven years.

Facing widespread economic concerns following the Brexit vote, the Bank of England on Thursday announced an interest rate cut to a new record low of 0.25%. The Bank also introduced a new quantitative easing programme: buying £60 billion of gilts and £10 billion of corporate bonds, as well as a new Term Funding Scheme to reinforce the effect of the other measures.  

The announcement pushed the FTSE 100 index up 1.7% at 6747.41 at its close on Thursday. The blue-chip index prolonged those gains on Friday, rising a further 0.3% to reach its highest level since July 2015. Sterling fell by 1% against the US dollar and the Euro. Andy Scott, economist at HiFX said the outlook for sterling after the Bank of England interest rate cuts remains negative.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Aviva PLC370.90 GBP0.00Rating
Barratt Developments PLC687.40 GBP0.00
Berkeley Group Holdings (The) PLC4,293.00 GBP0.00
HSBC Holdings PLC414.05 GBP0.00Rating
Kingfisher PLC325.00 GBP0.00Rating
Prudential PLC1,303.50 GBP0.00Rating
Standard Chartered PLC411.60 GBP0.00Rating
Taylor Wimpey PLC154.20 GBP0.00

About Author

Karen Kwok

Karen Kwok  is a Reporter for