FTSE up following interest rate announcement from the Bank of England

The FTSE rose today (May 13th), following a forecast from the Bank of England, saying that it will only start to raise interest rates in a year's time.

Reuters reports that the bank cut its forecasts for British economic growth over the next three years. This led to a drop for sterling, but gave equities a lift.

The FTSE 100 was up 0.6 per cent at 6,977.31 points at 11:11 (BST) – it had fallen 1.4 per cent in the previous session, amid concerns about Greece and the bond market, but is up around six per cent overall this year.

In terms of currency, the pound went up 0.06 per cent against the dollar, bringing it to $1.5682. However, it also fell 0.2 per cent against the euro to €1.3948.

Big gains

The top FTSE 100 gainer is Mondi, which has seen shares go up by more than ten per cent. The company recently announced that its first quarter underlying operating profit was 29 per cent above the same period last year.

Meanwhile, Barratt Developments advanced four per cent. According to Reuters, the house builder is expecting to build more houses this year than previously forecast – thanks to strong demand and improved sales numbers.

Persimmon, another house builder also rose, gaining two per cent.

Meanwhile, the UK Oil and Gas index has gone up 0.4 per cent. This follows a rise in crude oil prices and is supported by bets that US crude stockpiles will fall again this week.

Not all positive

While many movements in the market have been positive, some have seen drops.

Compass Group, for example, fell 2.9 per cent. The catering firm says it will remain cautious, but stands by its full-year forecast.

Admiral Group also fell 1.6 per cent. The insurer has announced that chief executive Henry Engelhardt will step down in one year. He will be replaced by co-founder and chief operating officer David Stevens.