But he hinted more quantitative easing was likely and this kept traders in buoyant mood.
The biggest risers on the FTSE 100 were M&G, up 10p at 150p, Burberry, up 103.5p at 1,583.5p, Evraz, up 17.9p at 290.7p, and Melrose, up 7.2p at 125.85p.
The biggest fallers of the day were Rolls-Royce, down 27.1p at 319p, Standard Chartered, down 19.3p at 392.1p, Meggitt, down 9.8p at 295p, and HSBC, down 12.25p at 384.35p.
However China continues to loom large over the markets as the growing concern about Beijing's looming crackdown on security laws in Hong Kong causes jitters.
A drumbeat of opposition and veiled threats from the US continued to rumble but with US secretary of state Mike Pompeo declaring Hong Kong was no longer autonomous from China. If that stance holds, Hong Kong would no longer benefit from lower tariffs than China's.
The South China Morning Post said China was ready to hit back if the Washington took any punitive actions.
CMC Markets analyst Michael Hewson said: "A US and China flare-up could let some of the air out of the current air of optimism."
Asian stocks and oil prices fell back as a result. Little wonder HSBC and Standard Chartered - closely tied to the region - dropped.
The price of a barrel of Brent crude oil increased 3.26% to $35.21.
