* FTSE gains on oil, banks, pharma
* Market eyes BoE policy review
* British house prices rose 2.6 percent in May - Halifax
By Catherine Bosley
LONDON, June 4 (Reuters) - Britain's top share index was up 0.4 percent late Thursday morning, helped by oil, pharma and banking shares, as investors eyed the outcome of the Bank of England's interest rate decision at midday.
At 1018 GMT the benchmark FTSE 100 <.FTSE> index was up 19.41 points at 4,402.83. The blue-chip index closed 96.60 points or 2.1 percent lower on Wednesday at 4,383.42.
Oil majors led the rise, rebounding after recent falls, with
Royal Dutch Shell
"All eyes on the Bank of England," said Jeremy Batstone-Carr, analyst with Charles Stanley. "The market's adopting a mildly positive approach to the fact that we're not getting much of an update on monetary policy." The results of the Bank of England's Monetary Policy Committee meeting were due at 1100 GMT. [ID:nL393918].
The Bank is expected to keep interest rates steady at a record low of 0.5 percent and refrain from expanding its quantitative easing plan.
House prices in Britain rose by 2.6 percent in May, ahead of analysts expectations, the Halifax house price survey showed, underscoring hope the recession may be easing. [ID:nLAC003306].
Although the FTSE has fallen 0.6 percent this year, it has jumped 28 percent since its trough on March 9.
"In order to see a further kicker from these kinds of (stock market) levels, we need to see confirmation that a lasting revival is underway, not merely recovery built on improving stock levels," Batstone-Carr said.
"Anything that central banks can do to help that.... would be regarded as a positive," he also said.
On Wednesday, U.S. Federal Reserve Chairman Ben Bernanke said he expected to see "some positive growth later this year", adding that corralling government debt was vital to ensuring long-term U.S. economic health. [ID:nN03107471].
SUPERMARKETS RISE
Pharmaceuticals and banks were also among the risers.
Barclays
AstraZeneca
"Given the uncertainty in the wider economy the cash generative nature of the business makes the sector look pretty defensive," Batstone-Carr said of pharmaceutical shares.
Food retailers also gained strength after Morrison
Supermarkets
Morrison gained 1.5 percent, while J Sainsbury
Heavyweight miners were the biggest drag on the index, with
BHP Billiton
The European Central Bank announces its interest rate decision at 1145 GMT. It is expected to keep rates at 1 percent, with the market keen to see detail of its covered bond purchase plan. [ID:nL3669427] (Editing by Dan Lalor)