LONDON MARKETS: FTSE 100 Wavers After BOE Call, Osborne Statement

By Sara Sjolin, MarketWatch

LONDON (MarketWatch) -- The U.K.'s FTSE 100 index stayed around the flat line on Thursday after the Bank of England as expected made no changes to its monetary policy. Meanwhile, the Office for Budget Responsibility more than doubled its growth forecast for the country for 2013.

The benchmark traded slightly lower at 6,505.03 after closing in negative territory for a fourth straight day on Wednesday.

The U.K.'s central bank was in the spotlight as it offered no surprises at its December policy meeting, leaving the size of its bond-buying program unchanged and holding its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($614 billion). The minutes from the December meeting will be published on Wednesday, Dec. 18.

The European Central Bank also announced no rate change at its monthly meeting.

Also on Thursday, the Chancellor of the Exchequer George Osborne delivered his Autumn Statement on the economy to members of parliament, including the latest forecast from the Office for Budget Responsibility. The OBR more than doubled its growth forecast for the U.K. for 2013 to 1.4% from an earlier forecast of 0.6% and raised the outlook for 2014 to 2.4% from 1.8%.

Among notable movers in London, miners posted some of the biggest gains, building on advances seen on Wednesday. Shares of Vedanta Resources PLC added 2.7%, Fresnillo PLC gained 1.3% and Rio Tinto PLC (RIO) picked up 1.8%.

Outside the main index, Drax Group PLC rose 3.2% after J.P. Morgan Cazenove lifted the utility firm to overweight from neutral.

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