The FTSE has recovered following a moderate drop at the opening bell as the MPC minutes reveal no change.

The FTSE has made its way back into positive territory this morning, up around 20 points, after news that policy makers remained split 6-3 in favour of keeping interest rates unchanged. With geo-political concerns providing much food for thought recently, it seems that domestic matters are now back on the menu. Markets seem relatively calm at the moment – compared with the dramatic swings of the past few weeks – as investors appear to have slipped into ‘wait and see’ mode ahead of today’s Budget announcement. Cairn Energy is leading the blue chips so far, continuing yesterday’s push following a positive earnings report. At the other end, supermarkets are propping up the index, with Sainsbury’s faring the worst, down 4.6% on the back of disappointing sales figures. Tesco’s also shed 2.2% on the news.

Looking ahead, the 2011 Budget is due at 12.30pm (London time), with the Chancellor outlining his fiscal strategy following last year’s savage cuts. Reports that the budget deficit is slowly eroding, and speculation that there is little room for further tightening, mean it is unlikely that Mr Osborne will be producing any fireworks from his red briefcase this year. He may bring out a couple of sparklers to keep things interesting, though it remains to be seen whether this will be enough to ignite the markets. Across the Atlantic, the main focus today will be new home sales data due at 2.00pm (London time).