FTSE 100 steady after Bank report

http://www.bbc.co.uk/news/business-32717996

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(Close): UK shares remained higher after the Bank of England's latest inflation report, which trimmed growth forecasts for the next three years.

Analysts said lower growth meant the low interest rate environment was likely to continue, boosting equities.

Interest rates are not expected to rise until about a year's time.

The FTSE 100 rose 15.83 points to 6,949.63, having fallen nearly 1.4% in the previous session on worries over Greece and the bond market.

At close, the pound was up 0.43% against the dollar at $1.5740, but was 0.99% lower against the euro at €1.3839.

Among individual stocks, Mondi was the biggest riser in the FTSE 100. Shares in the packaging company jumped nearly 9% after it reported a 29% rise in first-quarter operating profits.

Barratt rose 3.39% after it said housing market conditions remained strong, and raised its forecast for the number of houses it expects to build this year. Rival housebuilder Persimmon also rose, gaining 4.12%.

Shares in catering group Compass fell 3.78% despite reporting a 4.5% rise in half-year pre-tax profits to £621m and saying it was on track to meet its full-year forecasts.

Admiral Group shares fell 1.56% after the insurance group said its chief executive, Henry Engelhardt, would be stepping down from the position in one year's time.

Mr Englehart is being replaced by co-founder and current chief operating officer David Stevens.