London's FTSE 100 fell 0.3% to 10,785 points on Friday, ending a two-session advance as investors assessed the Bank of England's decision to hold its policy rate at 3.75%, revised inflation forecasts, other central-bank decisions, Middle East risks and continued weakness in oil prices. The BoE's Monetary Policy Committee voted 6-3, with Catherine Mann, Megan Greene and Huw Pill supporting an immediate increase, and warned that a prolonged regional conflict could require tighter policy. The central bank now expects inflation to exceed 4% in early 2027, compared with a previous projected peak of 3.2%, while raising its third-quarter GDP growth forecast to 0.4% from 0.1%. Barclays and J.P. Morgan now forecast 25-basis-point rate increases in November 2026 and February 2027, while Goldman Sachs sees a November increase as probable and Morgan Stanley expects rates to remain unchanged for longer. UK retail sales rose 0.5% in August, reversing July's decline and beating expectations for a 0.2% fall. Oil prices fell for a third consecutive session as Saudi Arabia worked to restore flows through its East-West pipeline, ahead of US President Donald Trump's planned meeting with Gulf leaders next week.