Shares in British banks were broadly down on the FTSE 100 in morning trading ahead of interest rate decisions from the Bank of England and the European Central Bank.

Both the BoE and the ECB are expected to hold rates at 0.5 per cent and 1.25 per cent respectively.

The BoE has come under increasing pressure to raise rates to combat rising inflation in Britain. Inflation currently stands at over four per cent, well above the BoE's official two per cent target, and is expected to reach five per cent before the end of the year.

Despite this the BoE is not expected to raise rates until August at the earliest.

The ECB, while it is not expected to raise rates, did raise rates last month from 1.0 per cent to 1.25 per cent.

By 09:25 shares in Lloyds Banking Group were down 1.92 per cent to 47.74 pence per share, RBS shares fell 1.52 per cent to 40.73 pence per share and Barclays shares declined 1.04 per cent to 260.40 pence per share.

However HSBC shares rose 0.13 per cent to 617.40 pence per share.

Overall the FTSE 100 was up 0.10 per cent to 5,814.46.