The FTSE 100 reached a record high in London as traders speculated on BOE interest rate cut.

The FTSE 100 has climbed to a record high amid expectations that the Bank of England will slash interest rates today.

Britain’s leading stock market index jumped 1.1% to 8,720.07 as money markets adjusted their outlook, anticipating further easing of borrowing costs.

Investors expect the Monetary Policy Committee to implement three rate cuts by year’s end, with the third reduction predicted by September.

Just a week ago, the market had only priced in two cuts as concerns over potential tariffs from the Trump administration weighed on sentiment.

Today, the Bank Rate is forecast to drop from 4.75% to 4.5%, marking the third reduction since last summer.

The FTSE 100 reached an all-time high, buoyed by robust results from its biggest component, AstraZeneca, while traders in London remained optimistic about a potential rate cut from the Bank of England. The index climbed 1%, the DAX advanced roughly 0.8%, and the CAC in Paris increased by 0.4% as European shares rallied broadly on a wave of strong corporate earnings.

This record-setting performance indicates that despite persistent concerns over trade wars, tariffs, and geopolitical risks, investors continue to back companies with attractive valuations.

AstraZeneca’s impressive quarterly performance, driven by blockbuster cancer drugs that boosted revenues by 21%, lifted its shares by 5% to lead the blue chips. Meanwhile, Anglo American helped propel mining stocks to significant gains.