UK stocks fall as BoE policymaker flags inflation risks, medical device makers weigh
BY Reuters | ECONOMIC | 09/25/25 12:23 PM EDT*
FTSE 100 down 0.4%, FTSE 250 down 0.5%
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British medical equipment shares slide on US tariffs fears
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Petershill Partners
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Mitchells & Butler dives on weak Q4 sales growth
(Updates after markets close)
Sept 25 (Reuters) - London stocks closed lower on Thursday as investors turned cautious over inflation risks and the Bank of England's interest rate outlook, while weakness in medical device makers and healthcare shares added to the drag.
The benchmark FTSE 100 fell 0.4%, its biggest percentage slide in a week. The domestically focused FTSE 250 was down 0.5%.
BoE policymaker Megan Greene said on Wednesday that the risks of inflation in Britain will prove stronger than the central bank's forecast, meriting a cautious approach to further interest rate cuts.
The country has the highest inflation rate among Group of Seven economies, at 3.8% in August, and the BoE thinks it will peak at 4% in September before falling back to the central bank's 2% target in the spring of 2027.
Meanwhile, Wall Street share indexes fell to their lowest in a week on Thursday, as fresh economic data and comments from a Federal Reserve official tempered optimism over further rate cuts.
Yields on British government bonds climbed after data showed the U.S. economy grew more quickly than previously expected, pushing up borrowing costs on both sides of the Atlantic.
British medical equipment and services stocks fell 2.3% after the U.S. Commerce Department said it had opened new national security investigations into the import of personal protective equipment, medical items, robotics, and industrial machinery.
Medical equipment maker Convatec Group
An index of healthcare stocks also declined 1.8%.
Mitchells & Butlers
Petershill Partners
An index of industrial metal miners continued gains from the previous session, up 1.5%, tracking gains in copper prices.
Rio Tinto was the top gainer in the FTSE 100, up 3.5%. (Reporting by Sanchayaita Roy in Bengaluru; Editing by Leroy Leo)
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