Shares rally as Governor plays down rate rise

Leading UK shares have rallied after new Bank of England Governor downplayed an imminent interest rate rise.

FTSE shares rose in anticipation of the further continuation of cheap borrowing costs, with the FTSE 100 index gaining an extra 45 points to 6,345.

Sterling also fell, immediately dropping a cent and a half against the dollar to $1.5141.

In a rare statement, the Monetary Policy Committee (MPC) which sets rates said: "the implied rise in the expected future path of Bank Rate was not warranted by the recent developments in the domestic economy."