(Il Sole 24 Ore Radiocor) - London, 18 Sep - Shares in London closed lower as investors braced for what is expected to be the first interest rate cut by the Federal Reserve in more than four years.

The market is undecided whether the Fed will cut rates by just a quarter point in its decision later today or if it will opt to take a more aggressive approach and cut by a half point.

Investors will also look to chair Jerome Powell's comments for clues about the Fed's future monetary policy path.

Traders also looked ahead to the Bank of England's latest monetary policy decision tomorrow, amid lingering uncertainty on whether the central bank will move to cut rates for the second time in two months.

Meanwhile, data showed today that UK inflation held steady in August, matching expectations.

In August, UK consumer prices rose 0.3% month on month and 2.2% year on year, according to the Office for National Statistics.

The headline consumer price index was in line with the previous 2.2% reading in July, also matching Reuters forecasts. Headline CPI had come in at 2% in both May and June, in line with the Bank of England's target rate.

Last Thursday the European Central Bank's slashed rates again by 25 basis points, bringing its key interest rate to 3.5% and marking its second rate cut this year after a similar move in June.

The London FTSE 100 closed down 0.68% at 8,253.68 points.

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(RADIOCOR) 18-09-24 18:27:38 (0617) 5 NNNN