London's FTSE 100 rose on Wednesday after a wobbly start following data showing a surprise jump in domestic inflation, while markets waited for the U.S. Federal Reserve to announce its latest interest rate decision.
to 10.4% in February, lifting sterling on expectations of higher interest rates although the pound later pared gains, helping lift the internationally focused FTSE 100.
"The consensus may be coalescing around a 25 basis point hike, but then we still worry about financial market stability and banking prices," said Marija Veitmane, senior multi-asset strategist at State Street Global Markets.
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