The UK's leading shares had another good day, thanks to the prospect of further interest rate cuts and a strong start on Wall Street.

The FTSE 100 index of leading shares ended up 65.5 points at 5908.8.

London's leading shares have enjoyed a pre-Christmas rally, although trading has been thin.

There are growing hopes for another imminent cut in interest rates after minutes from the Bank of England's Monetary Policy Committee (MPC) showed members had voted eight-to-one in favour of a 0.5% rate cut at its December meeting.

The only dissenting committee member had called for a 0.75 point cut.

That member, Willem Buiter, had argued "there was no good reason for cutting rates in steps" and that "the real side of the economy had responded faster to events than the committee had expected."

"The MPC minutes suggest rates will be cut by three quarters of a point or a point in the first quarter of next year," said Peter Caulkett of Teather & Greenwood.

A widening trend in the trade gap had little impact on shares. Corporate news was also thin on the ground.

The resignations of government ministers Peter Mandelson and Geoffrey Robinson failed to upset share prices.

Shares in MSB International were up 32.5p at 382.5p, continuing the company's good run after a positive trading statement last week.

GEC shares rose 6p to 543p on news of a European defence deal.