UPDATE 2-Banks propel FTSE higher after flurry of central bank meetings

* FTSE 100 rise 0.6%, FTSE 250 up 0.2%
* Financials provide biggest boost to indexes
* Next falls after weak update
* Rating actions drive biggest gainers on FTSE 100

(Adds news items, analyst comment, updates to closing prices)
By Yadarisa Shabong and Muvija M
Sept 19 (Reuters) - A rebound in bank stocks after the U.S.
Federal Reserve adopted a guarded stance on future interest rate
cuts lifted London's blue-chip index on Thursday, while clothing
retailer Next wilted after a disappointing start to autumn
trading.
The FTSE 100 index .FTSE ended 0.6% higher and the mid-cap
FTSE 250 index .FTMC rose 0.2%, with the financial sector
boosting both the indexes.
The Fed slashed rates for the second time this year, but set
a higher bar to any further reductions. Central banks around the
world have been loosening monetary policy to stem a slowdown in
economic growth. "Financials is the European super-sector out in front; no
doubt the result of a raft of central bank meetings that barely
dented the rates environment," City Index analyst Ken Odeluga
said.
A sub-index of banks .FTNMX8350 advanced 1.4%, recovering
from losses earlier in the week. CMC Markets analyst Michael
Hewson said the Fed's signal to hold back on further cuts was
probably not priced in.
The Bank of England's announcement at midday to keep rates
unchanged, although expected, further aided the FTSE 100's
run-up to Thursday's session high.
UK stocks were not deterred after the BoE warned that Brexit
uncertainty and slower global growth were increasingly causing
the UK to perform below its potential, adding that failure to
reach a deal to leave the European Union by Oct. 31 would worsen
the problem. "Brexit concerns haven't gone away, though Parliament's
suspension offers a short, tense, break," Odeluga added.
Among stocks, Next NXT.L tumbled nearly 6% after a
"disappointing" start to autumn trading that the retailer said
was down to unusually warm weather in parts of Britain.
JD Sports JD.L dropped almost 3% after the British
competition regulator announced its intention to refer the
retailer's deal to buy Footasylum to a phase-2 investigation.

Brokerage actions drove some blue-chip moves. The world's
second largest mobile operator Vodafone VOD.L advanced 2.7%
after HSBC hiked its price target.
British Airways owner IAG ICAG.L gained 3.8% after Morgan
Stanley initiated coverage with an "overweight" rating, saying
the hurdles the company faces have been more than priced in.
Midcap constituent IG Group IGG.L jumped 10% to a
seven-month high as client numbers grew thanks to favourable
market conditions in August. Online trading platform rival
Plus500 PLUSP.L added 5%. Insurance services firm Charles Taylor CTR.L shot up by
38% to its highest level in three years, with the share price
topping the 315 pence-a-share go-private deal it has agreed with
a firm backed by private equity firm Lovell Minnick Partners.