London stocks set for weekly decline as investors weigh central bank moves

Sept 19 (Reuters) - London stocks were set to end an eventful week marginally lower on Friday as investors assessed central bank decisions, with the U.S. Federal Reserve taking center stage.

The blue-chip FTSE 100 .FTSE was flat at 1026 GMT and headed for a marginal weekly decline on lingering inflation worries.

The mid-cap FTSE 250 .FTMC fell 0.6% and was also on track for a weekly loss.

The Bank of England’s widely expected pause on Thursday followed its quarter-point cut in August, as it navigates sticky inflation and an uncertain growth and jobs outlook.

Major brokerages including Goldman Sachs, Citigroup and J.P.Morgan expect no more interest rate cuts by the BoE this year after the British central bank kept its key rate on hold.

A survey showed on Friday that Britons turned more downbeat this month, and the prospect of tax increases in finance minister Rachel Reeves’s November budget threatens to erode confidence further.

Meanwhile, central banks in the United States, Canada and Norway cut interest rates, boosting hopes of more easing to come.

The Fed's 25 basis point rate cut, its first since December, lifted riskier assets in the previous session.

Media stocks .FTNMX403010 fell the most among sectors, down 1.5%, with Bloomsbury Publishing BLPU.L declining 4.7%.

Gains in precious metal miners .FTNMX551030 helped limit losses with 2.4% as gold prices edged higher. GOL/

Among individual stocks, Close Brothers CBRO.L the most in the FTSE 250, down 6.6%, after the British lender delayed its preliminary 2025 results by a week to 30 September 2025.

Spire Healthcare SPI.L jumped 17.3% after the private hospital group said it was exploring strategic options, including a potential sale of the company.

British retail sales rose by a stronger-than-expected 0.5% in August, helped by sunny weather, though July growth was revised slightly lower, data showed.

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