FTSE closes higher after Bank of England keeps rates unchanged

 
Jessica Morris
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Glencore was the biggest loser (Source: Getty) (Source: Getty)

Britain's blue-chip index closed up 0.6 per cent to 6,374.82 points today, after the Bank of England (BoE) voted 8-1 in favour of holding interest rates at a record low 0.5 per cent.

The Bank's monetary policy committee - which is charged with setting interest rates - pushed back its forecast for when inflation will return to one per cent, from the turn of this year to spring.

"There is some relief that the BoE is not in a hurry to raise interest rates, especially because the central bank sees inflation rising too slowly to its target level," Keith Bowman, equity analyst at Hargreaves Lansdown, said.

Read more: Bank holds rates as inflation forecasts are pushed back

"The UK stock market is also getting support from a rally in some commodity stocks."

Miner Fresnillo closed up 4.1 per cent to 703.50p per share on a HSBC note that raised its target price for the stock to 810 pence from 760 pence. Meanwhile another mining company, BHP Billiton, ended the day 3.5 per cent at 1,146.75p per share.

Embattled commodities giant Glencore sunk to the bottom of the index after broker Canaccord Genuity cut its target price to 190p from 220p. The company's shares closed down 2.7 per cent to 120.65p per share.

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