UPDATE 2-FTSE 100 hits over 1-year high on strong earnings; BoE slows bond-buying

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* Next gains on pulling profit forecast
* BoE eases back on pace of bond-buying
* BATS, Shell biggest boost to FTSE 100
* FTSE 100 up 0.4%, FTSE 250 adds 0.5%

(Updates to market close)
By Devik Jain and Shivani Kumaresan
May 6 (Reuters) - London's FTSE 100 hit a more than one-year
high on Thursday, boosted by heavyweight consumer staple stocks
and positive earnings updates from Next and Melrose Industries,
while the Bank of England eased the pace of bond-buying and
raised the forecast for economic growth.
The blue-chip index .FTSE rose 0.4%, with fashion retailer
Next NXT.L gaining 1.5% as it raised its profit outlook for
the 2021-22 year for the second time in two months. Engineer Melrose MRON.L climbed 0.8% after it said it was
performing "modestly" ahead of expectations, with operating
margins in the first quarter improving faster than expected.
The domestically focused mid-cap FTSE 250 index .FTMC
advanced 0.5%.
The Bank of England said Britain's economy would grow by the
most since World War Two this year and slowed the pace of its
trillion dollar bond-purchasing programme, but stressed it was
not reversing its stimulus. "The BoE is quite explicit in trying to convince the market
saying its an operational decision that should not be
interpreted as a significant change in how they view the
economy, policy stance. But you cannot escape the fact that it
has a little bit of hawkish cue to it," said Stefan Koopman,
senior market economist at Rabobank.
"This makes the situation at the Fed even more interesting.
The market's speculation on a Fed taper has already been assumed
as in August."
After rising more than 9% year-to-date on optimism about a
stronger economic reopening from pandemic-driven recession last
year, the FTSE 100 has traded in a tight range since April on
concerns central banks might pull their monetary support sooner
than expected as inflation rises.
Meanwhile, Scotland was voting in a parliamentary election
that could trigger a showdown with British Prime Minister Boris
Johnson over a new independence referendum that might result in
the break-up of the United Kingdom. Among other stocks, insulation products maker Morgan
Advanced Materials MGAMM.L jumped on confident annual sales
outlook. Britain's largest homebuilder Barratt Developments BDEV.L
added 2.1% after it forecast wholly-owned annual home
completions ahead of its previous estimates, as the sector
benefits from government measures and low interest
rates.