Shares in British banks were broadly up on the FTSE 100 in morning trading ahead of the Bank of England's quarterly inflation report.

Inflation has remained well above the Bank of England's official target of two per cent, with the Consumer Price Index showing an annual rate of inflation of 3.1 per cent in September.

In August the BoE said it believed that the current high rate of inflation would remain high on a temporary basis only.

By 10:30 shares in Lloyds Banking Group were up 0.39 per cent to 68.75 pence per share, RBS shares rose 0.11 per cent to 43.80 pence per share and Barclays shares climbed 0.62 per cent to 298.85 pence per share.

HSBC shares however fell 0.53 per cent to 690.70 pence per share.

Overall the FTSE 100 was down 0.26 per cent to 5,859.80.

Barclays HSBC FTSE