Trillion-Dollar Tech Sell-Off Rocks Global Markets as Bank of England Meets
Thursday 05 February 2026 6:52 am – A dramatic trillion-dollar sell-off in technology stocks has sent shockwaves through global financial markets, with London's FTSE 100 bracing for impact as the Bank of England's monetary policy committee convenes for its first meeting of the year.
Nvidia boss Jensen Huang has publicly criticised the tech sell-off as "illogical", but the market turmoil follows news of Anthropic's latest AI innovation, which has triggered billions in losses for global software giants. As investors worldwide assess the damage, attention in the City of London shifts squarely to Threadneedle Street.
Bank of England's Crucial Interest Rate Decision
The Bank of England's monetary committee is poised to make a pivotal decision on whether to implement further cuts to interest rates. Market analysts and City AM's own Shadow MPC are largely predicting a hold, anticipating that the Bank will maintain its current gradual approach to reducing the base rate.
Investor sentiment suggests the next 25 basis point cut is unlikely to materialise before April. This timing aligns with expected regulatory changes to energy pricing, which are projected to help drive inflation downward in the coming months.
Monetary Policy Report and Inflation Outlook
Alongside the interest rates announcement, the Bank is scheduled to publish its inaugural monetary policy report for the calendar year. This comprehensive document will feature updated economic forecasts, including research on how recent Budget policies might influence price growth.
The report will also contain fresh analysis examining the impact of President Trump's tariffs on global trade patterns. Bank governor Andrew Bailey is expected to provide an updated assessment of inflation trends, offering clearer guidance on the potential timeline for future interest rate reductions.
The key question remains: will the Bank adopt a more dovish stance, or will it persist with its current measured pace of monetary policy adjustments?
Yesterday's Top Financial Stories
As we await today's developments, here are some of the leading stories from yesterday's financial news:
- Exclusive: Starling's top investors withdraw support for London IPO
- Lime policy chief advocates retiming traffic lights to enhance cyclist safety in London
- Britain's economic growth slumps, leaving the Business Secretary perplexed
- The Debate: Should student loan debt be forgiven?
- Is the Guinness Bristol City deal indicative of future trends in football shirt sponsorships?
Stay with us throughout the day as we bring you live updates and analysis on these critical market developments.
