Britain's top share index fell 0.2 percent early on Thursday, weighed down by weaker commodity stocks as investors took profits after four sessions of gains ahead of the latest Bank of England meeting, due at midday.
At 0930 GMT, the FTSE 100 was 12.60 points lower at 5,520.61 after it closed 49.15 points, or 0.9 percent higher on Wednesday, ending at a seven-week peak.
Miners were the biggest drag on the blue chip index as metal prices weakened, taking the shine off a sector that had helped drive the market higher this week.
Rio Tinto, Xstrata, Lonmin, Anglo American and BHP Billiton fell 0.8 to 1.5 percent.
The index is up 2.9 percent this week but for now seems to be held in a trading range around 5,500 that it last saw in mid-January before fears on the global economy saw it lose nearly 10 percent by early February.
"We're at the top end of a trading range and there's a sense that the market has weathered the storm," said Andrew Bell, chief executive of Witan Investment Trust.
"But it's natural that we appear to be in a period of consolidation as we have to let the real economy catch up with the sharp rally in stock markets we saw last year," Bell said. The FTSE 100 gained 22 percent in 2009.
Moves were muted ahead of the interest rate decision and announcement on quantitative easing from the Bank of England.
The central bank looks set to keep its powder dry as it pauses to assess the impact of the massive stimulus it has already injected into the economy.
It is exactly a year since Britain's central bank slashed interest rates to a record low 0.5 percent and began buying bonds in an unprecedented attempt to kickstart growth.
Economists polled by Reuters were unanimous in forecasting interest rates would remain at 0.5 percent this month and all but one predicted the BoE would hold fire on quantitative easing.
Energy stocks also weighed on the blue chip index as crude retreated slightly, though it held above $80 per barrel. BG Group, BP, Royal Dutch Shell and Tullow Oil fell 0.3 to 0.6 percent.
Banks provided the main underlying support for the FTSE 100 index, with Barclays Standard Chartered, Royal Bank of Scotland and Lloyds Banking Group gaining 0.1 to 2.4 percent, though HSBC fell 0.5 percent.
RESULTS MIXED
Schroders was the top blue chip gainer, up 3.5 percent as the investment company reported an 11 percent rise in full-year pretax profits driven by rising assets under management and higher net inflows from clients.
But investors reacted negatively to results from Amec, although the oil services and engineering group posted a 13 percent rise in full-year EBITA, with Deutsche Bank highlighting a relatively weak topline outlook.
Amec was the top blue chip faller, down 5.6 percent.
Peer Petrofac shed 2.2 percent after the firm and Sweden's Lundin Petroleum said they would spin off their North Sea oil assets into a new venture to be floated on the London Stock Exchange.
Evolution cut its rating for Petrofac to "neutral" from "buy" following the news.
Insurer Aviva fell 1.9 percent although it posted a better than expected 3 percent increase in 2009 profit with brokers highlighting a weaker book value and the firm's large pension deficit.
Highlighting the headwinds facing the UK economy, house prices in Britain unexpectedly fell 1.5 percent in February, the first drop since June last year, mortgage lender Halifax said on Thursday.
As well as the announcement from the BoE, The European Central Bank also announces its latest monetary policy decision on Thursday, with no ECB changes expected either at 1245 GMT.
