FTSE 100 Index: Set to crash after BoE despite Rolls-Royce share price gains

Rolls-Royce [https://invezz.com/wp-content/uploads/2025/05/Rolls-Royce-1.png] The FTSE 100 Index is doing well this year, despite the UK economy facing stagflation, high interest rates, and a risky doom loop. It has jumped by over 20% from the lowest level this year as investors wait for the upcoming BoE interest rates decision. FTSE 100 INDEX THRIVES DESPITE THE UK DOOM LOOP The blue-chip FTSE 100 Index, which tracks the biggest British companies, has jumped by double-digits from its lowest level in April this year. This performance coincided with the recent surge in other global indices like the Nasdaq 100, S&P 500, Nikkei 225, and the German DAX. Most notably, it has jumped despite the UK economy facing what is commonly known as the doom loop. The UK doom loop is described as the period of high interest rates, debt, slow economic growth, and policy constraints. Data shows that the UK has a debt-to-GDP ratio of about 100%, and the government is struggling to fund its budget, with consistent 5.1% budget deficits. Meanwhile, UK borrowing rates have surged, with the long-term bond yields rising to the…