Bank of England keeps rates unchanged; FTSE 100 falls over 1% led by declines in energy and mining stocks

(1) The FTSE 100 Index fell by over 1% on Thursday as the Bank of England voted 7-2 to keep the interest rate unchanged at 3.75%, leading to subdued market sentiment. Energy and mining stocks weakened due to the continued decline in commodity prices, which dragged the index down. (2) Both Shell and BP dropped by over 1.5%, Rio Tinto fell by 2.3%, Glencore declined by 2.4%, and Anglo American decreased by 3.2%. Tesco also weighed on the index, falling by more than 1.5% as its first quarter sales growth missed expectations. Several stocks traded ex-dividend, including Persimmon, Land Securities, and 3i Group. (3) At its June meeting, the Bank of England maintained the benchmark interest rate at 3.75%, with two members voting for a 25 basis point increase, in line with expectations. The Bank reiterated its focus on returning the inflation rate to the 2% target while monitoring geopolitical risks. The Federal Reserve also kept its interest rate unchanged, but 9 out of 19 policymakers expect at least one rate hike this year.