FTSE 100 Live: Stocks to fall as markets brace for interest rate call

Welcome to the liveblog of the FTSE 100 index, which is expected to experience a decline on Thursday morning. UK investors are bracing for crucial interest rate decisions, as concerns about rising energy prices, artificial intelligence advancements, and government debt gain prominence. The Bank of England's Monetary Policy Committee (MPC) is scheduled to meet on Thursday and is anticipated to maintain the interest rate at 3.75 per cent.

The decision will be revealed at noon, and market participants will be keenly observing governor Andrew Bailey's comments to gauge whether a rate hike may be imminent. Last week, Bailey cautioned MPs that inflation risks are on the upside, warning that energy prices could escalate further due to the ongoing Iran war and the ongoing dispute over the Strait of Hormuz.

He emphasized that the conflict persists and continues to generate energy price volatility, which is "feeding through into financial markets". Economists have suggested that the Bank of England may raise interest rates once before Christmas and a total of three times before the following July, potentially resulting in a one per cent increase in rates by next year.

In the United States, the Federal Reserve announced on Wednesday a 25 basis point interest rate hike, contrary to White House pressures. Throughout the day, we will provide the most recent market updates and analysis. Today's headline coverage includes Burnham's warning of a challenging Budget and a response to a "socialist with TikTok" remark, the decline in Marks and Spencer's shares as investors anticipate an inflation impact, a legal dispute between Santander and BMW over motor finance, a UK AI company warning against "sci-fi" fears stifling the UK's technology sector, and a penalty imposed on a home secretary donor by an accountancy regulator. The liveblog session has concluded.