THE UK's FTSE-100 index of leading shares has risen above its previous peak set at the end of the last millennium, boosted by mining stocks and eurozone finance ministers' approval of Greece's bail-out extension.
Sterling meanwhile hit fresh seven-year highs against the euro yesterday after Monetary Policy Committee member Kristin Forbes cited various factors which could lead to UK base rates being raised from their record low in the "near future", while signalling her belief that an increase was not currently warranted.
The FTSE-100, which was launched in January 1984, hit an intra-day peak of 6958.89 during yesterday's session, exceeding its previous high point of 6950.6 achieved on December 30, 1999. It finished 37.47 points higher on the day at 6949.63.
The euro dropped as far as 73.08p during London trading as sterling continued to record fresh seven-year highs against the single currency. At 5pm, the euro was trading around 73.32p, down slightly from 73.36p at close of play on Monday.
Ms Forbes said: "Accommodative monetary policy is supporting a sharp pick-up in consumption growth and fall in the saving rate, but this does not yet appear to be outside of historic norms or be stimulating unhealthy borrowing or household debt accumulation.
"All of these trends merit close attention - as they could directly impact the MPC's primary mandate (inflation) or its secondary mandates (economic and financial stability). Any could factor into a case to tighten monetary policy in the near future. But they do not currently appear to be generating a sufficient cost to merit a change in interest rates today."
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