* FTSE 100 up 0.7 percent; Bank of England news awaited
* Banks extend rally; RBS numbers due Friday
* Aviva and Unilever up after results
* Defensives drag as risk appetite returns
By David Brett
LONDON, Aug 6 (Reuters) - Britain's top share index rose 0.7 percent in late morning trade on Thursday, as financials led the way, driven higher by well-received results over the past couple of days, with traders awaiting news from the Bank of England.
At 1002 GMT, the FTSE 100 index was 32.95 points higher at 4,679.84, pushing back up towards Monday's intraday 2009 peak of 4,710.23 and having closed 24.24 points weaker on Wednesday.
Banks were the top risers as this week's earnings news underpinned the sector's advances, with the second quarter results by Royal Bank of Scotland, due on Friday, rounding off the season.
RBS and Lloyds, which reported figures on Wednesday, vied for the top position on the FTSE risers chart, up 7 percent and 6.7 percent respectively.
Barclays added 3.7 percent and HSBC rose 3.4 percent, with investors focused on the latest interest rate and quantitative easing news from the Bank of England due at 1100 GMT.
"There had been thoughts that we may see further measures in quantitative easing this month, although this now seems unlikely and it will be signs of exit strategies that traders will be looking for," said Ian Griffiths, a dealer at CMC Markets.
A poll by Reuters suggests analysts are split as to whether the BoE will call a pause to its 125 billion pound ($212.2 billion) asset-buying programme or raise the cash total by another 25 billion pounds, when the decision from its latest Monetary Policy Committee meeting is announced..
"Monday's peak above the 4,700 level could prove hard to recapture with much depending on what pronouncements come out of the BoE meeting," said Mic Mills, senior trader at spread betters ETX Capital.
Life insurer Aviva, up 5.6 percent, found favour after it posted stronger-than-expected first-half profit, helped by cost cuts, and said it planned a partial flotation of Dutch subsidiary Delta Lloyd to bolster its capital.
Fellow life insurer Prudential, up 1.3 percent, joined the rally, but Standard Life lost 1.3 percent after Citigroup cut its rating to "hold" following weak numbers on Wednesday.
Non-life insurer RSA Insurance fell 1 percent as a cautious outlook statement offset its better-than-expected first half operating profit.
Anglo-Dutch household products giant Unilever, up 5.8 percent, saw support after forecast-beating results, as Numis repeated its "add" rating and suggested switching into the stock from Cadbury, as it had more favourable second half momentum.
Miners and oil producers added support to the index as metal and crude prices saw strength on hopes for a revival of demand as economies revive.
Miners Lonmin, Fresnillo, Kazakhmys, BHP Billiton and Rio Tinto rose between 0.3 and 2.9 percent.
Among oils producers, Tullow Oil, BG Group, Cairn Energy and Royal Dutch Shell climbed 0.2-1.8 percent.
DEFENSIVES WEIGH
Defensives weighed on the blue chips with utilities and, pharmaceuticals down as investors risk appetite returned.
Severn Trent, United Utilities and Pennon Group lost 0.8 to 1.7 percent.
AstraZeneca and GlaxoSmithKline were down 0.7 percent and 0.2 percent respectively, but Shire bucked the trend, up 4.5 percent, extending Wednesday's gains on the back of well-received second-quarter results.
Reckit Benckiser dropped 1 percent and Invensys was also a big faller, down 3.2 percent after Goldman Sachs cut its rating to "neutral" from "buy".
Meanwhile, the European Central Bank (ECB) is scheduled to announce its decision on interest rates at 1145 GMT , and the U.S weekly jobless data is due out at 1230 GMT. (Editing by Rupert Winchester)