The FTSE 100 was down 0.3 per cent at 6,709.13 in early deals with heavy falls from blue chips Royal Mail and Intertek providing a drag. The index finished at 6,671.97 on Tuesday, its highest close since 22 September when it settled at 6,773.63.

The BoE will release the minutes of this month’s Monetary Policy Committee meeting, at which policymakers voted in favour of keeping the Bank Rate unchanged at 0.5 per cent. However, markets will be watching closely to see if there was still division among members over whether of not to hike rates.

Economist Simon Smith from FxPro said that given the dovish tone of the BoE’s recent Inflation Report, in which it revised down its growth and inflation projections, “it would be surprising if two members were still voting for higher rates as has been the case since August of this year”.

“A lot has changed since then, not only domestically but also in the global economy, which is why we would expect at least one member to come back into the majority view,” he said.

Minutes from the Federal Open Market Committee (FOMC) will be in focus on Wednesday evening with investors largely expecting a more hawkish statement from policymakers.

Overnight, the Bank of Japan decided to stick with its current bond purchases after last month surprising with the announcement of an increase to 80trn yen per year, up from 60-70 previously.

Royal Mail, Intertek, pub groups

Shares in Royal Mail dropped sharply after the firm warned that its key parcels market remained challenging. Revenue in the six months to 28 September rose 2% to £4.5bn but underlying pre-tax profit dipped to £218m from £233m a year ago.

Product testing group Intertek also fell after warning that persistent weak conditions for its commodities and oil and gas customers in the third quarter will result in full-year revenues being lower than previously expected and margins unimproved on last year’s.

Pub groups were suffering steep losses early on after MPs voted to scrap the so-called ‘beer tie’, which links landlords’ rent and supplies to their parent pub companies. The boss of Enterprise Inns, whose shares tanked 13 per cent, said the amendment to the bill would have “serious unintended consequences” on the industry, including job losses and pub closures.

Punch Taverns and JD Wetherspoon were also in the red.