Supermarket Sainsbury's was among stocks driving the FTSE 100 Index higher after a better-than-expected rise in half-year profits.
The Bank of England's comments that the UK economic recovery had "only just started" failed to hold the Footsie back, up 55.5 points at 5286.1.
The pound took a hit, however, down nearly 1% to 1.66 against the US dollar and to 1.106 against the euro.
The Bank's quarterly report stressed the strength of the UK economic recovery was highly uncertain and signalled a further three years of weak bank lending.
Among stocks, Sainsbury's was one of the leading risers after reporting an 18.5% rise in interim results to £307 million - bettering the £300 million expected in the market. The chain's shares rose 10.8p to 338.4p - or 4% - despite further cautioning over slowing sales growth over the months ahead.
Power station group International Power was another strong gainer as it predicted that 2009 earnings will match last year's level. While UK and US markets remain challenging, shares rose 11.8p to 269p.
But utility firm Scottish & Southern Energy lost ground on news it is facing pressure from rising wholesale gas prices and operating costs. Shares fell 22p to 1058p, even though the company said it was on track to meet full-year expectations.
Reed Elsevier was the leading Footsie faller, down 26.5p to 458p, after the publisher said chief executive Ian Smith had left the company after less than a year in the top job.
Fellow publisher Johnston Press was moving in the opposite direction, ahead 4%, after it confirmed ongoing improvement in advertising revenues.
The Scotsman and Yorkshire Post owner said ad declines had eased to 19.1% in the 10 weeks to October 31 - substantially better than the 32.7% plunge seen in the first half of its year.
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