UK stocks rallied to hit a fresh record ahead of the rate decision. The FTSE 100 is up 1.1 per cent — touching a fresh high — helped by weakness in the pound. The mid-cap FTSE 250 rose 0.7 per cent. Most sectors in the FTSE 100 were up,

The FTSE 100 was trading at a record high on Thursday afternoon as investors cheered a 'dovish' Bank of England base rate cut, despite forecasts of a worsening economic outlook.

Laurence Mutkin, BMO’s EMEA head of rate strategy, is worried that the Bank of England is going to focus too much on slowing growth when it updates the market today. He told Bloomberg TV earlier what the gilt market actually wants to hear is that Governor Andrew Bailey is laser-focused on inflation.