Published by Global Banking & Finance Review®
Posted on October 31, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleLondon stocks fell as focus shifted to the UK budget and Bank of England decisions. FTSE indexes dipped but are poised for monthly gains.
By Avinash P
(Reuters) -British stocks edged lower on Friday, with the blue-chip FTSE 100 set to extend its fall in the previous session, as markets cooled after a record run earlier this month.
Investors were also cautious ahead of the Bank of England's monetary policy decision next month and the government's budget later in November.
The FTSE 100 and the domestically focused FTSE 250 were down 0.3% each, as of 1210 GMT.
Still, both indexes were on track for monthly gains, with the FTSE 100 touching record highs multiple times in October and the midcap index trading close to four-year highs.
Pharmaceuticals, financials and mining stocks were among top sectoral performers for the month, boosted also by a strong start to the earnings season from companies such as HSBC and GSK.
Signs of inflation staying tame increased bets that the Bank of England could cut interest rates this year, while globally, thawing U.S.-China trade tensions and dovish monetary policy by the U.S. Federal Reserve also aided risk taking.
Investors expect no change to Britain's benchmark interest rate in November, but are pricing in a cut in December, according to data compiled by LSEG.
"More dovish sounding Bank of England, particularly in light of the upcoming budget and potential tax increases could be favourable for the FTSE," said Fiona Cincotta, senior market analyst at City Index.
Auto Trader's shares dipped 3.4% after the automotive platform announced its operations chief will step down.
In company news, Fresnillo said it has agreed to buy Canada's Probe Gold for C$780 million ($556 million) in cash, marking the gold miner's expansion into North American markets. Shares of the UK company inched up 1%.
On the data front, lender Nationwide said that British house prices rose in October.
(Reporting by Avinash P in Bengaluru; Editing by Sahal Muhammed)
The FTSE 100 is an index that represents the 100 largest companies listed on the London Stock Exchange, based on market capitalization. It is widely used as a benchmark for the performance of the UK stock market.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage. They are influenced by central bank policies and can affect economic activity.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI).
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and overseeing financial stability.
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