London stocks opened flat on Thursday as investors remained on the sidelines and maintained a cautious stance ahead of a highly anticipated interest rate decision by the Bank of England (BoE).
The blue-chip FTSE 100 held its ground at 8,206.49 points, as of 0707 GMT.
The mid-cap FTSE 250 was down 0.1% at 20,365.13.
The pound was steady against the dollar at $1.271. Investors refrained from making big bets as they eagerly count down to the central bank’s vote at 1100 GMT.
While it is widely anticipated that the BoE will hold the interest rates steady, all eyes will be on the vote-split and the comments from officials to assess the future trajectory of borrowing costs in Britain.
Traders are currently pricing in less than a 30% chance of an initial rate cut in August.
This figure could dramatically shift in either direction following the vote.
London stocks rise ahead of UK inflation data, cenbank decision
Among individual stocks, Sainsbury’s jumped 2% after NatWest struck a deal to acquire most of the banking business of the British retailer.
Shares of Energean gained 5.6% after the oil and gas producer agreed to sell its assets in Egypt, Italy and Croatia to private equity fund Carlyle for up to $945 million.
CMC Markets soared 8% after the trading platform posted a 52% jump in its annual adjusted pre-tax profit.
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