18.12.202512:14:29UTC+00UK Stocks Flat After BoE Decision

London's FTSE 100 Index saw its initial gains soften to hover around the break-even point on Thursday. This market movement followed the Bank of England's widely anticipated decision to lower the interest rate by 25 basis points during its year-end meeting, where it reaffirmed a cautious approach toward further easing. Investors scaled back their expectations for additional rate cuts, having initially anticipated a more dovish outlook in light of weaker-than-expected inflation figures. Leading the gainers, Whitbread rose nearly 6% after activist investment firm Corvex Management, which has acquired a 6% stake, advocated for a strategic reassessment at the Premier Inn parent company. Following close behind, Rentokil Initial recorded a 3.1% increase after BofA Global Research upgraded its rating from "neutral" to "buy" and raised the price target from 425 pence to 510 pence. Conversely, Burberry Group, United Utilities Group, and Bunzl registered declines of 1.9%, 1.5%, and 1.3%, respectively. In other developments, BP's stock remained largely unchanged after announcing Meg O’Neill as the incoming chief executive officer.