FTSE 100 dips as stronger pound, mixed earnings weigh

July 30 (Reuters) - London's FTSE 100 closed slightly lower on Thursday after the Bank of England decided to keep interest rates on hold and mixed earnings reports weighed on the blue-chip index.

The FTSE 100 index closed down 0.1% at 10,897.27 points, pulling back from an intraday record high earlier in the session. The UK midcap FTSE 250 rose 0.3%

• The Bank of England kept interest rates on hold as it waits to see how the Iran war affects inflation pressures, although the renewal of hostilities prompted a third policymaker to back a rate hike.

• The pound initially fell after the BoE's decision but gained ground as the day wore on against a broadly softer dollar.

• The FTSE 100 is made up of international companies that draw a large part of their revenue in dollars, making them vulnerable to currency fluctuations.

• The U.S. Federal Reserve left interest rates unchanged on Wednesday even as chief Kevin Warsh pledged an unwavering commitment to bring inflation down, a message that left markets confused about what he was prepared to do.

• Precious and industrial metal miners gained 1.9% and 3%, respectively, tracking gains in copper prices, and steady prices of bullion. [MET/L] [GOL/]

• Aerospace and defence firms were the top sectoral gainers following a 6% boost to Rolls-Royce shares after the engineering company raised its full-year outlook far beyond market expectations.

• Paper and packaging firm Mondi surged 10.9%, its sharpest one-day jump since August 2022 after first-half results which powered the FTSE 350 General Industrials sector to its highest level since March 2025.

• On the flip side, industrial support services slipped, weighed down by a 20.6% slump in Rentokil after the pest control firm flagged weakness in its North America business.

• Energy stocks dipped 0.1% despite Brent crude topping $90 a barrel after the U.S. military struck dozens of targets in Iran.

(Reporting by Purvi Agarwal and Sruthi Shankar in Bengaluru; Editing by Devika Syamnath and Elaine Hardcastle)