Thursday's session brought UK Construction PMI figures. UK construction companies signalled that business conditions remained subdued during October. Caution in terms of the outlook for construction workloads meant that employment numbers increased at one of the slowest rates seen over the past four years. At 50.8 in October, up from 48.1 in September, the seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index moved back above the 50.0 no-change mark. However, the latest reading was weaker than the post-crisis trend (54.7) and signalled only a marginal rise in overall construction output.

However, the focus of the session was on BoE's interest rate decision. Alongside Governor Mark Carney, the majority of rate-setters at the U.K.'s central bank voted in favor of hiking the benchmark rate to 0.5 percent from 0.25 percent. The Bank of England's decision to rate hikes Thursday sees the central bank fall in line with the U.S. Federal Reserve and to some extent the European Central Bank. The central bank expects the inflation rate to have peaked at 3.2 percent in October — and will be at 3 percent for the year as a whole. Speaking at a news conference shortly after the interest rate announcement, Carney said: "It isn't so much where inflation is now but where it is going that concerns us."

Carney stressed that rates would "gently" rise as inflation eases in the foreseeable future. The central bank expects the inflation rate to have peaked at 3.2 percent in October — and will be at 3 percent for the year as a whole. The bank had previously said that inflation would be 2.8 percent for 2017. The Bank said its nine rate-setters voted 7-2 to increase its benchmark rate. As expected, the two Monetary Policy Committee (MPC) members voting to keep borrowing costs unchanged were Jon Cunliffe and Dave Ramsden. However, most rate-setters decided it was the "appropriate" time to tighten monetary policy.

This week markets will be looking at:

Industrial Production (Friday 10:30)