UK's energy stocks (.FTNMX601010) slipped 0.9%, but was still around record-high levels.
Heavyweight pharma stocks (.FTNMX201030) fell 0.3%
The BoE held rates at 3.75% at Thursday's policy meeting. Its warning that inflation posed a bigger risk than slowing growth pushed traders to price in a roughly 60% chance of a 25-basis-point hike by April and potentially up to three quarter-point increases by year-end.
A line chart with the title 'Britain's inflation and interest rates'
Fresh fiscal concerns rose after Britain borrowed far more than expected in February, partly due to volatile debt-interest payments, just as the Iran conflict drove up funding costs and fuelled calls for higher public spending.
Among other movers, Unilever (ULVR.L) shares inched 0.9% up after the consumer goods giant confirmed it was in talks with U.S.-based McCormick & Company (MKC.N) about selling its foods business.
Smiths Group (SMIN.L) dropped 7.9% after the engineering group missed half‑year organic revenue forecasts.
JD Wetherspoon (JDW.L) fell 12.3% after the pub chain said that its full-year profits may fall below market estimates after higher energy costs and wage-related taxes dragged first-half profit down by 37%.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair
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