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Bank vote sees equites ease back; Next jumps

Mark CarneyThur: London stocks dropped as the Bank of England decided to keep policy unchanged and as China concerns persisted following the release of data on inflation and produce prices.

The BoE unsurprisingly voted 8-1 in favour of maintaining interest rates at 0.5% and the asset purchase programme unchanged.

Governor Mark Carney (pictured) voted with the majority of the Monetary Policy Committee while Ian McCafferty remained the only member of the to vote for an increase in rates, minutes of the policy meeting revealed.

However, the MPC highlighted that inflation remains well below the 2% target, with the 12-month consumer price index rising slightly to 0.1% in July. The move also comes amid worries on China’s flagging economy.

Wm Morrison slumped after posting 35% drop in underlying first half pre-tax profit as revenue fell on the back of price cuts.

Next jumped after reporting a 7.1% gain in first-half pre-tax profit, with revenue up as the company sold more items at full price than it had expected.

The FTSE 100 was down 1.18% at 6,155.81

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