FTSE 100 opens flat at 10,862 as Bank of England holds at 3.75%

The FTSE 100 began Tuesday's session exactly where it left off, matching its previous close of 10,862.5 with no net movement at the open. That flatness reflects a market caught between a central bank that has stopped cutting and an economic backdrop that has yet to deliver the growth upgrades needed to push equities meaningfully higher. The Bank of England has held its base rate at 3.75%, and policymakers have been explicit that upside inflation risk remains a live concern, leaving little room for a dovish pivot that might otherwise lift rate-sensitive sectors.

The recent chart trend offers some context: the index climbed from around 10,736 in late July to a peak near 10,908 before drifting back to its current level, suggesting buyers have been present but unwilling to push through resistance. With inflation caution baked into the Bank's language, any sustained leg higher for UK equities will likely require corporate earnings or macro data to show genuine growth momentum rather than a change in interest-rate expectations. Elsewhere in Europe, Frankfurt's DAX was already slipping 0.1% at the open, a signal that the cautious mood is not confined to London.