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UK inflation slows less than expected to 3.2%

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ASOS rises on retaining FY outlook, naming new CFO

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Entain ( GMVHF ) climbs on better-than-expected results

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FTSE 100 up 0.4%, FTSE 250 flat

(Updated at 1550 GMT)

By Pranav Kashyap and Shubham Batra

April 17 (Reuters) - The UK's benchmark index FTSE 100

climbed on Wednesday, underpinned by industrial metal miners,

while the pound strengthened on growing doubts over the prospect

of early rate cuts by the Bank of England.

The resources-heavy FTSE 100 advanced 0.4% and the

mid-cap FTSE 250 traded flat at the close after posting

steep losses on Tuesday.

Industrial metal miners gained 2.2%, with

shares of Rio Tinto rising 2.6%, after the

miner published a steady operations update.

The automobile and parts sector was the

biggest loser, dropping 1.2%.

The pound slipped against the dollar and traded last

at $1.2445 after Britain's inflation slowed to 3.2% in March,

compared with 3.4% a month ago, but was slightly higher than

economists' expectations of 3.1%, according to a Reuters poll.

"This March report helps keep the door open to mid-year

interest rate cuts from the BoE, which would be a relief to UK

homeowners and consumers, with Governor Bailey saying he sees

'strong evidence' of retreating price pressures," said Ben

Laidler, analyst at investment platform eToro.

"This first cut would likely be after the ECB but now before

the US Federal Reserve."

Traders expect the Bank of England to cut rates by 40 basis

points in 2024, with the possibility of a first rate cut only in

September.

BoE policymaker Megan Greene on Wednesday said that the

tensions in the Middle East could pose a risk to the inflation

outlook, including by heightening inflation expectations.

Meanwhile, Fed Chair Jerome Powell said on Tuesday that

monetary policy needs to be restrictive for longer, further

dashing investors' hopes for meaningful reductions in borrowing

costs this year.

Among individual stocks, ASOS advanced 4.9% after

the online fashion retailer appointed a new CFO and reiterated

its full-year forecast for adjusted core profit despite stiff

competition and excess inventory.

Entain ( GMVHF ) rose about 1.0% after the owner of Ladbrokes

posted better-than expected first-quarter online gaming revenue

due to a rise in its customer base.