European stocks close higher; Bank of England keeps rate unchanged

By Ovunc Kutlu

ISTANBUL (AA) - European stock exchanges closed with gains Thursday, while the Bank of England kept its interest rate unchanged at 5.25%.

The STOXX Europe 600, which includes around 90% of the market capitalization of European markets in 17 countries, was up 4.78 points, or 0.93%, to close at 518.91.

Spain's IBEX 35 gained 104 points, or 0.94%, to end the day at 11,160.

Germany’s DAX increased 186 points, or 1.03%, to close at 18,254. France's CAC 40 gained 101 points, or 1.34%, to end the session at 7,671.

Italy's FTSE MIB was the best performer of the day, soaring 454 points, or 1.37%, to hit 33,675 by the closing bell.

The UK's FTSE 100 rose 67 points, or 0.82%, to finish the session at 8,272.

The Bank of England said earlier that the Monetary Policy Committee (MPC) voted by a majority of 7–2 to maintain the bank rate at 5.25%, while two members preferred to reduce it by 0.25 percentage points to 5%.

"Twelve-month CPI inflation fell to 2.0% in May from 3.2% in March, close to the May Monetary Policy Report projection," the MPC said in its post-meeting statement.

"Indicators of short-term inflation expectations have also continued to moderate, particularly for households."

The Bank of England said consumer price index (CPI) inflation is expected to rise slightly in the second half of this year, but the UK's economy appears to have grown more strongly than expected during the first half of 2024.

The MPC said it will adjust monetary policy as warranted by economic data and continue to monitor closely indications of persistent inflationary pressures and resilience in the economy as a whole, including a range of measures of the underlying tightness of labor market conditions, wage growth and services price inflation.