FTSE 100 hits record high as rate cut hopes rise

Investors are betting on a UK interest rate cut (James Manning/PA) - (PA Wire)

Stock prices in London have closed mostly higher, as investors shored up bets on the Bank of England cutting interest rates in March after unemployment increased, while the pound fell.

The FTSE 100 index closed up 82.48 points, 0.8%, at 10,556.17, a new record high. The FTSE 250 ended up 180.35 points, 0.8%, at 23,555.82, and the AIM all-share closed down 4.73 points, 0.6%, at 806.61.