---
title: "FTSE Holds Steady as Investors Await Interest Rate Direction"
publisher: "Share Talk"
author: "sharetalk"
published: "2025-10-16T18:58:21+00:00"
modified: "2025-10-16T18:58:21+00:00"
date: 2025-10-16
canonical: "https://www.share-talk.com/ftse-holds-steady-as-investors-await-interest-rate-direction/"
category: "Blogs"
categories: ["Blogs", "Technology", "Technology, Media & Telecoms"]
tags: ["Beefeater", "BRITISH", "Donald Trump", "Dow Jones", "economy", "FTSE 100", "FTSE 250", "G7", "NASDAQ", "Premier Inn", "Whitbread", "Xi Jinping"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/01/LONDON-31ST-JAN-24.jpg?fit=1200%2C800&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# FTSE Holds Steady as Investors Await Interest Rate Direction

**Published:** October 16, 2025
**Author:** sharetalk
**Categories:** Blogs, Technology, Technology, Media & Telecoms
**Tags:** Beefeater, BRITISH, Donald Trump, Dow Jones, economy, FTSE 100, FTSE 250, G7, NASDAQ, Premier Inn, Whitbread, Xi Jinping
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/01/LONDON-31ST-JAN-24.jpg?fit=1200%2C800&quality=89&ssl=1)

---

**London stocks ended mixed on Thursday** as investors digested a **varied slate of corporate updates** and remained cautious ahead of **next week’s UK inflation figures**, which could shape the **Bank of England’s next interest rate decision**.

The **FTSE 100** edged up **0.1%**, while the **mid-cap FTSE 250** slipped **0.1%**, reflecting the muted sentiment across markets.

Official data showed the **UK economy grew by 0.1% in August**, matching analyst forecasts and offering a modest boost for **Chancellor Rachel Reeves** ahead of her **November Budget**. However, the small rebound from July’s contraction is **unlikely to alter expectations of tax rises** as the government grapples with a sluggish economy and tight fiscal constraints.

The UK continues to face **stubbornly low growth** and **the highest inflation rate among major developed economies**, complicating the **Bank of England’s policy path**. The central bank **held rates at 4% last month**, but markets remain divided on whether it will begin **cutting rates in November, December, or early 2026**.

Within the market, **insurance stocks** were among the **worst performers**, with **Admiral Group** falling **2.4%**.

In New York, the **S&P 500** was **flat**, the **Nasdaq Composite** rose **0.2%**, and the **Dow Jones Industrial Average** slipped **0.1%**. The **MSCI World Index**, which tracks equities across major markets, was up **0.2%** overall.

Markets have been volatile since **Donald Trump** last week **threatened 100% tariffs on Chinese goods** in retaliation for Beijing’s new **export controls on rare earth materials**. The move reignited fears of an escalation in the long-running US-China trade war.

However, **Treasury Secretary Scott Bessent** struck a **more conciliatory tone** on Wednesday, signalling that a **pause in new tariffs** may be possible as both sides work to resolve the rare earths dispute. He also confirmed that **President Trump still intends to meet Chinese President Xi Jinping later this month**.

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