BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The major European markets closed mostly higher on Thursday following the Bank of England's announcement of its decision to leave interest rates unchanged.
While the French CAC 40 Index edged up by 0.2 percent, the U.K.'s FTSE 100 Index and the German DAX Index climbed by 0.5 percent and 0.6 percent, respectively. Meanwhile, the Stoxx Europe 600 Index dipped by 0.1 percent.
The Bank of England left its key interest rate on hold amid tepid growth and downgraded its growth outlook for this year.
The Monetary Policy Committee voted 7-2 to maintain the benchmark rate at 0.50 percent. The bank had previously raised its key rate in November 2017, which was the first hike in a decade.
A majority of members judged that an increase in the rate was not required at this meeting. The recent weakness in data for the first quarter had been consistent with a temporary soft patch, with few implications for the current degree of slack or for the outlook for the U.K. economy, the BoE said.
The economy is projected to grow 1.4 percent by the second quarter of 2018, down from the 1.8 percent estimated in February. Growth is seen at 1.7 percent in each of the next three years.
Italy's biggest bank Unicredit advanced 1.8 percent after its first quarter net profit increased by double digits.
Royal Bank of Scotland Group also moved to the upside. The bank agreed to pay a $4.9 billion penalty to settle a U.S. Justice Department investigation about the issuance of residential mortgage-backed securities.
Retailer Next Plc also jumped 6.1 percent after posting better than expected first quarter sales and raising its profit guidance.
Meanwhile, gold producer Randgold Resources slumped after it reported a 22 percent decline in profits for the first quarter from last year.
Home builder Barratt Developments also moved lower after releasing its trading update for the period from January 1st to May 6th.
On the data front, U.K. industrial production grew marginally in March, figures from the Office for National Statistics showed. Industrial output rose 0.1 percent month-on-month in March, the same pace of increase as seen in February. Output was expected to gain 0.2 percent.
The U.K. house price balance hit its lowest level since November of 2012, largely driven by the weakness in London, the Royal Institution of Chartered Surveyors reported. The house price balance came in at -8 in April after stagnating in March.
Copyright RTT News/dpa-AFX