The FTSE 100 closed up 41.55 points (0.4%) at 10,881.90 and gained 3.1% over the week, while banks lagged. Bank of England Governor Andrew Bailey said evidence of second-round inflation effects was limited, adding “it’s too early,” and that policy was already restrictive. NatWest fell 1.2% and Lloyds 0.9% after the Guardian reported Chancellor John Healey is poised to tax banks more heavily in his upcoming budget, possibly by reversing Jeremy Hunt’s cuts to the bank surcharge, which could raise upwards of £2 billion a year.
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