(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

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Bank of England rate decision at 1200 GMT, expected to

hold

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Next expects sales growth to slow, shares down 4.2%

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FTSE 100 up 0.4%, FTSE 250 gains 0.3%

By Shashwat Chauhan

Sept 18 (Reuters) - London stocks advanced on Thursday,

in line with a broader move across Europe after the U.S. Federal

Reserve cut interest rates for the first time this year, with

focus now on the Bank of England's (BoE) rate verdict later in

the day.

The blue-chip FTSE 100 gained 0.4% by 0915 GMT, with

gains in business information group RELX ( RELX ) and aircraft

engine maker Rolls-Royce among the top boosts.

UK's midcap index also climbed 0.3%, helped by a

13.1% gain in Jupiter Fund Management ( JFHHF ) after brokerage

Peel Hunt upgraded its rating on the money manager to "buy" from

"add".

The personal goods sub-sector was among the

top gainers, up 1.9% with shares of luxury firm Burberry ( BBRYF )

advancing 3.1%.

Precious metal miners were the laggards, down

2% as gold prices came off their record highs.

Bourses across Europe advanced after the Fed reduced

interest rates by an expected 25 basis points and indicated more

cuts would follow to halt any slide in an already weakening

labour market.

Focus now shifts to the BoE's rate decision at 1200 GMT,

with the central bank widely expected to hold its main lending

rate steady at 4%.

"Inflation hasn't fallen in a way that allows policymakers

to signal further cuts. Markets should expect steady rates into

the new year unless there's a decisive downward break in the

data," said Nigel Green, CEO of deVere Group.

Data released earlier this week showed British inflation in

August stood at 3.8% on a yearly basis, the highest among major

advanced economies.

Among other top movers on Thursday, Next dropped

4.2% after the fashion retailer struck a cautious tone on the

trading outlook, despite reporting a near 14% increase in

first-half profit.

Pets at Home slumped 14.4% after the retailer said

its CEO has left the company and cut its annual profit

estimates.