In a widely-anticipated decision, the Bank of England opted to maintain its benchmark interest rate at 0.25%. However, the vote tally to keep the rate unchanged was only 5 as the number of dissenting views rose to 3.
Analysts had forecast only one BoE member voting in favour of a rate rise, in-line with the May meeting. Data points released earlier this week have shown UK inflation surging close to 3.00% alongside average wages falling and retail sales dropping, evidence of the growing inflationary impact on growth and economic activity.
The Central Bank also reaffirmed the size of its asset purchase program at GBP 435 billion and its corporate bond purchase program at GBP 10 billion.
The kneejerk reaction to the decision sent FTSE 100 futures tumbling to 7314 last session before mounting a pullback in early Friday trade.