FTSE 100 Drops as Bank of Japan Raises Rates

The FTSE 100 fell 1.5% to 10,659.13 on Friday, driven by rising bond yields and concerns that inflation and high energy prices will keep interest rates elevated. Brent oil prices contributed to the volatility, reaching 104.37 dollars per barrel, while Wall Street experienced quarterly triple witching.

Global central bank activity pressured markets. The Bank of Japan raised its policy rate by 25 basis points to 1.25%, the highest level since 1995, though the yen weakened after the announcement. In the United Kingdom, the Bank of England held rates steady on Thursday, but analysts from RBC Capital Markets and Panmure Liberum now anticipate rate hikes in November.

Individual corporate news also weighed on the index. Airtel Africa shares plummeted 11% following reports that the company lowered the IPO target for its Airtel Money arm. Glencore saw a 4% decline after suspending Peter Hill, its head of steelmaking raw materials, pending a review of business dealings with Radiant World.