Updated at 1624 GMT

By Pranav Kashyap

Oct 16 (Reuters) -The UK's main stock indexes jumped on Wednesday after a key inflation reading showed British inflation fell more than expected, boosting the case for a rate cut by the Bank of England.

The blue-chip FTSE 100 .FTSE jumped almost 1% to close at a near four-week high, while the mid-cap FTSE 250 index .FTMC climbed 0.9% to touch a two-week closing high.

Precious metal miners .FTNMX551030 led sectoral gains, rising 3.3%, while the rate-sensitive real estate sector .FTNMX402020 added 3%.

Consumer price index data showed British inflation fell more than expected to an annual rate of 1.7% in September from 2.2% in August. A Reuters poll had expected CPI to drop to 1.9%.

The pound GBP=D3 fell 0.6% to the dollar, another tailwind for British equities.

Investors currently see about a 90% chance the Bank of England will cut rates at its next meeting on Nov. 7.

"Today's inflation print will reassure members of the Monetary Policy Committee that the tide is turning in the battle against inflation," Aaron Hussein, global market strategist at J.P. Morgan Asset Management, said.

"A quarterly cadence of cuts appears most likely. Investors expecting the Bank to keep pace with its peers around the world are therefore likely to be disappointed."

Non-life insurers .FTNMX303020 lost 1.7% after the Financial Conduct Authority began a review of the premium finance market, amid fears that consumers who borrow to pay for motor and home insurance may not be receiving fair or competitive deals.

Quilter QLT.L gained 4.7% after the British wealth manager reported higher third-quarter assets under management.

Tate & Lyle TATE.L jumped8.3% after the Financial Times reported that private equity firm Advent International is preparing a takeover offer for the UK-based food and beverage ingredients maker.

Reporting by Pranav Kashyap and Sruthi Shankar in Bengaluru; Editing by Mrigank Dhaniwala and David Gregorio

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