London investors to focus on BoE interest rate call this week

British investors will focus this week on an interest rate decision from the Bank of England amid a smattering of economic data and a dearth of company earnings news.

London's FTSE 100 index advanced 5.13 per cent over the past week to finish at 5,989.76 points on Friday — a massive jump on the back of easing fears over the Greek and eurozone debt crises.

The British central bank will announce its latest decision on Thursday after a two-day gathering of the nine-member monetary policy committee, with most economists expecting no change.

Policymakers kept the BoE's key interest rate in June at a record low 0.50 per cent, where it has stood since March 2009, as worries over weak economic growth offset high inflation.

Britain's manufacturing sector barely expanded in June, when the purchasing managers' index dropped to 51.3 compared with 52.0 in May, according to data from research group Markit on Friday. Any score above 50 indicates growth.

'The UK manufacturing PMI fell to 51.3 in June. The outcome marked the lowest reading since September 2009 and the index is now more than 10 points below its peak of 61.6 in January,' ABN Amro economist Joost Beaumont said.

Source : New Age

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