The UK’s FTSE 100 inched up on Friday as investors continued to cheer the dovish tilt in the Bank of England’s monetary policy, while insurer Phoenix Group led gains after its annual results.

The blue-chip FTSE 100 rose 0.7% by 0909 GMT, hitting a more than 11-month high.

The index was set for its second consecutive week of gains, powered by a near 2% rise on Thursday after the BoE said the economy is moving in the direction for interest rate cuts.

“We are getting increasing talk about rate cuts in the near future … the (US inflation) uptick in recent weeks is not going to prevent central banks from cutting interest rates,” said Lilian Chovin, head of asset allocation at British private bank Coutts.

Meanwhile, the pound fell to its lowest in a month after data showed UK consumer spending stagnated in February and BoE Governor Andrew Bailey said rate cuts were in play this year, boosting dollar-earners on the benchmark index.

FTSE 100 slips as luxury, bank stocks weigh

Most sectors rose, with telecommunications rising 2% and leading gains.

Precious metals miners were down 1.5%, tracking the dip in spot gold prices.

Phoenix Group jumped 9.3% and led gains on the FTSE 100 after the insurer said it aimed to generate operating cash of 1.4 billion pounds ($1.77 billion) and pay down 500 million pounds in debt by 2026.

JD Sports fell 4.5% after its US counterpart Nike warned that its revenue in the first half of fiscal 2025 would shrink by a low single-digit percentage.

Meanwhile, the mid-cap FTSE 250 index edged up 0.1%, with gains limited by an 8.8% fall in Darktrace after a technology growth fund advised by private equity firm KKR fully exited its investment in the cybersecurity firm.