FTSE 100 Drops Ahead of BoE Decision
2026-03-18 17:09
By
Andre Joaquim
1 min. read
The FTSE 100 closed 0.9% lower at 10,305 on Wednesday on losses for fast-moving consumer goods and utility providers ahead of the Bank of England's policy decision tomorrow.
Severn Trent, United Utilities, and National Grid closed over 2% lower to track the pessimistic sentiment for the sector across Europe, pressured by another surge in natural gas prices following strikes on Iranian gas processing plants, while major European governments met to discuss.
Meanwhile, Unilever fell 3.5% after announcing it is considering separating its food assets from the main conglomerate.
Coca Cola and British American Tobacco also fell over 3%.
The BoE is expected to hold its rates unchanged tomorrow, aligned with decisions from other G10 banks as policymakers will remain cautious to decisions on an uncertain macroeconomic environment due to the war.
Pro-inflationary risks clash with signs of a weaker labor market, with the unemployment rate expected to rise to 5.3% in February.