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Updated at 1540 GMT

By Khushi Singh and Purvi Agarwal

Aug 23 (Reuters) - The UK's benchmark FTSE 100edged higher on Friday as markets globally cheered U.S. Federal Reserve Chair Jerome Powell's nod to initiate rate cuts at the Jackson Hole economic symposium.

The blue-chip FTSE 100 index .FTSE was up 0.5%, but logged in weekly declines.The mid-cap FTSE 250 .FTMC added 0.4%, touching highest levels in two weeks and marked its second week of gains.

In a highly anticipated speech at Jackson Hole, Wyoming,Powell said "the time has come" for the U.S. central bank to cut interest rates as rising risks to the job market left no room for further weakness and inflation was in reach of the Fed's 2% target, offering an explicit endorsement of an imminent policy easing.

"Powell was clear about the first rate cut, but not so much about the next ones. I think slow and steady is how the Fed wants to pace this early part of the easing," said Sam Stovall, Chief Investment Strategist, CFRA Research.

Traders now anticipate 100% chance of a September rate cut in the U.S., with one-in-three pricing in a half-point cut. 0#FEDWATCH

At the same event, Bank of England Governor Andrew Bailey said inflation pressure in the British economy was becoming less stubborn than in recent years, but it was still too soon to be sure.

Precious metal miners <.FTNMX551030>, gained 1.2% as gold pricesextended gains following dovish remarks from Powell.GOL/

Rate-sensitive real estate investment trusts .FTNMX351020 and life insurance .FTNMX303010 indexes added over 1% each, while retailers .FTNMX404010 led sectoral gains with a 1.9% jump.

On the downside, aerospace and defence .FTNMX502010 shares slipped 0.5%, leading sectoral declines, as aerospace components supplier Melrose Industries MRON.L fell 7.1% to the bottom of FTSE 100 following adouble rating downgrade from UBS.

Direct Line DLGD.L fell 2% after the home and motor insurer flagged a change in its solvency capital ratio for the year ended 2023.

Meanwhile, British consumer confidence held at an almost three-year high in August, bolstered by improving sentiment around personal finances and major purchases.

Reporting by Khushi Singh, Purvi Agarwal in Bengaluru; Editing by Janane Venkatraman and Nick Zieminski

 
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