LONDON: British shares ended lower on Thursday weighed down by major banks and investment stocks, but came off intraday lows after the pound fell on the Bank of England flagging a possible shift to negative rates.

The blue-chip FTSE 100 and the mid-cap FTSE 250 shed 0.5% and 0.3%, respectively, with major banks falling on the prospect of negative lending rates. But the resulting weakness in the pound looked to benefit the export-heavy index in the near-term.

Healthcare stocks supported the FTSE 100 slightly, with Astrazeneca adding 1.2% after it entered into an agreement with Dogma Therapeutics.

Tech-focussed investment firms were biggest drags on the FTSE 250 following another sell-off in US technology stocks.

The Bank of England said it was considering negative interest rates as Britain's economy faces a triple whammy of rising Covid-19 cases, higher unemployment and a possible new Brexit shock. It also kept its main stimulus programs on hold, citing a faster-than-expected economic recovery from pandemic lows.

Next rose 4.1% after the clothing retailer raised its profit outlook for the second time in two months.

Online trading platform IG Group topped the FTSE 250 after reporting a surge in first-quarter revenue.