UPDATE 1-UK's FTSE 100 edges higher; BoE rate decision in focus

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Updates prices, details on stocks and sectors; adds analyst comment in paragraph four and five

By Johann M Cherian

May 11 (Reuters) - UK's blue-chip FTSE 100 index was slightly up on Thursday, helped by gains in shares of export-oriented firms as the pound declined ahead of the Bank of England's (BoE) monetary policy decision.

The central bank is expected to announce a 25 basis point (rate hike at 1100 GMT, taking borrowing costs to their highest level since 2008 as it battles double digit inflation.

Following the announcement, market participants will keenly parse comments by Governor Andrew Bailey for clues on the outlook for inflation and consequent monetary tightening.

"The BoE has been the most lenient central bank so far (with rate hikes)," Capital.com senior market analyst Daniela Hathorn said.

"Investors are slightly concerned that the central bank is going to do enough, which is why we're seeing the pound down a bit."

The blue-chip FTSE 100 .FTSE rose 0.3% as healthcare stocks .FTNMX201030 and consumer staples firms including Unilever Plc ULVR.L surged after the pound GBP=D3 dropped 0.4%. The currency had hit a five-month high on Wednesday. GBP/

The FTSE large-cap and mid-cap indexes have hit shaky ground in May following a rebound in April, as uncertainty concerning the outlook for interest rates and a mixed bag of corporate earnings dented investor sentiment.

The more domestically-focussed mid-cap FTSE 250 .FTMC added 0.1% by 0836 GMT.

ITV Plc ITV.L fell 5.3% to hit more than a four-month low, after the broadcaster reported a 10% drop in its total advertising revenue in the first three months of 2023.

FirstGroup Plc FGP.L slid 5.4%, its biggest drop in eight months after the British government took temporary control of the transport firm's TransPennine Express.

Among other decliners were HSBC Holdings Plc HSBA.L, BP Plc BP.L, Petershill Partners Plc PHLL.L and Tesco Plc TSCO.L, dropping between 0.3% and 6% as the stocks traded ex-dividend.

(Reporting by Johann M Cherian in Bengaluru; Editing by Rashmi Aich)

((johann.mcherian@thomsonreuters.com;))

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