FTSE 100 hits a record high despite turmoil

THE FTSE 100 blue-chip index has shrugged off the UK's economic troubles to hit an all-time high in recent days, in a boost for private investors.

- Harvey Jones

The index of blue-chip stocks climbed past 8,500 for the first time ever on Friday, and has continued to climb this week.

That's despite the world's attention being focused on the US where President Donald Trump is expected to add further fuel to the Wall Street boom.

This is good news for pension and Stocks and Shares ISA investors with exposure to the UK stock market, as well as pensioners in drawdown. So what's driving this and can it last?

The FTSE 100 was lifted by last week's news that inflation dipped slightly in November to 2.5%, raising hopes that the Bank of England will cut base rates from today's 4.75% at its next meeting on February 6.