UK shares slipped initially on Thursday, with the FTSE 100 reaching a low of 7143.75.
FTSE bulls are now fighting back ahead of the upcoming BoE interest rate hike. The FTSE 100 is currently trading at 7224.45 as of 2:22 AM GMT.
The pound has dropped to a 37-year low against the dollar and raising interest rates seems to be a must for the Bank of England.
The biggest hike in interest rates for more than three decades is expected to be announced by the Bank of England today.
Interest rates are likely to increase by 0.75 percentage points from 1.75% to 2.5% when the Monetary Policy Committee (MPC) meets today.
It would be the highest interest rate that the UK has had since the financial crisis. In December 2008, the base rate was slashed from 3% to 2%.
It would also be the highest single increase in interest rates since 1989.
Update: BoE raises interest rates by 0.5%.