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UK shares climb on hopes of Bank action
Simon English, Evening Standard30.10.08
The FTSE 100 today hung on to the gains made yesterday ahead of last night's cut in US interest rates, with traders in the City hoping the Bank of England would take the hint and follow suit.
The index of London's leading shares was up 28 points to 4270.5, adding to yesterday's gain of more than 300 points.
The risers were led by miners, and by insurers after Standard Life made reassuring statements about its financial strength.
The Bank meets next week and is expected to deliver at least a half-point cut in rates to 4%.
Andrew Turnbull at ODL Securities said: "The UK economy needs its central bank to act quickly and decisively on this matter. At present, we are all fighting a battle with one hand tied behind our back."
Chancellor Alistair Darling today hinted the interest rate cuts could be enhanced by a tax cut, a move that could help stimulate the economy.
Turnbull added: "We are delighted to read reports that Darling has signalled flexibility for the Bank of England to cut rates. Our markets desperately need such cuts to help stimulate growth and return confidence. We have suffered stock market crashes, severe fuel and food price inflation and banks going bankrupt."
