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(Sharecast News) - European shares were higher on Thursday as the Bank of England has cut UK interest rates to their lowest level in almost three years, in an attempt to stimulate the economy, while Sweden and Norway held steady.
The pan-regional Stoxx 600 index was up 0.28% to 581.36 at 1150 GMT with a decision from the European Central Bank yet to come. Analysts expect the ECB to hold rates but lift eurozone growth forecasts.
In London, the BoE lowered its bank rate to 3.75% from 4% in line with expectations as it looked to boost the economy amid a weak jobs market and falling inflation.
However, the bank's policy committee was split 5-4 in favour of lower rates, with Governor Andrew Bailey voting for a cut having voted to leave rates on hold in November.
Earlier in the morning Sweden's Riksbank left its policy rate unchanged at 1.75% and indicated that "the rate is expected to remain at this level for some time to come".
"The prospects for the Swedish economy are looking brighter. Although it will take time before economic activity returns to normal, the recovery is under way. At the same time, inflation has approached 2%," policy makers said in a statement.
However, it added that the risk picture abroad is "still marked by geopolitical conflicts, uncertainty regarding US foreign and trade policy, high asset valuations in financial markets and weak public finances in several countries".
"In Sweden, there is also uncertainty around households' consumption behaviour and the effects that next year's more expansionary fiscal policy will have."
Norges Bank lefts its policy rate unchanged on Thursday at 4%, as widely expected, saying the outlook is "uncertain", but if the economy evolves broadly as currently projected, the policy rate will be reduced further in the course of the coming year.
Governor Ida Wolden Bache said: "We are not in a hurry to reduce the policy rate. The interest rate outlook is little changed since the September Report.
In equity news, Aeroports de Paris fell after Jefferies has downgraded the stock to 'hold' from 'buy', citing rising uncertainty surrounding the company's proposed industrial plan and its upcoming capital expenditures.
Reporting by Frank Prenesti for Sharecast.com