The reasons for leaving the Bank of England's repo rate at 4% earlier this month were unveiled today...
The reasons for leaving the Bank of England's repo rate at 4% earlier this month were unveiled today when the minutes of the last meeting of the Monetary Policy Committee were released, causing stocks to fall as investors saw that the MPC's members were more concerned about economic recovery than inflationary pressures.
The FTSE lost 100.6 points to close at 4,171.10.
This follows yesterday's decision by the US Federal Reserve Bank to leave rates there unchanged too.
A host of shares dipped as they went ex-dividend, which dragged the index down but not for particularly bad reasons.
News of a sales contract involving a Sage subsidiary in the US did nothing to help the firm, which saw its shares dip 9.5p to 114.5p and make it the biggest losing FTSE stock.
Investors are concerned that a slower than expected recovery in Sage's biggest markets will reduce demand for its accounting software.
Lloyds TSB led the banking sector down with a 37.5p cut to 542.5p after Credit Suisse analysts downgraded their share price target to 620p from 650p.
Paper cups did better, so Bunzl added 10.5p to 459p, closely followed by brick maker Hanson, which added 9p to 394p as investors turned defensive again.
The FTSE 250 index followed its bigger peer, losing 11.4 points to close at 4,711.7.
The mid-caps were no led down by a tech stock, but an old hand in the market: Morgan Crucible lost 8.5p to 74.5p.
Stagecoach did better, gaining another 1.5p to 36p on yesterday's news that it is buying back debt.
Bullish full-year forecasts for builder Balfour Beatty pushed its shares up 10p to 203p.
Chubb saw the biggest gains, however, putting on 8.75p to 134.25p.
In the US, the Dow Jones Industrial Average index is down 100 points at 8,381, with the Nasdaq Composite down 6 points at 1,275.
What made financial headlines over the weekend?
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