Banks drive FTSE to four-month high

Banks and miners have powered the FTSE to a four-month high in afternoon trading after the Bank of England held interest rates at their historical lows.

Shortly after 2pm, London's leading index was up 1.28%, or 69 points, to 5499 - its highest level since 4 May, with banking and mining stocks leading the upward charge. Barclays, up nearly 6%, leads the winners' board as the banking giant shakes off the negative sentiment surrounding the appointment of Bob Diamond as chief executive. HSBC has also made gains as the controversy surrounding news chairman Stephen Green is stepping down to become the government's trade minister subsides. RBS, too, is also amongst the afternoon's top performers with miners, including Vedanta Resources a...