UK stocks slumped on Friday after the British economy registered a surprising growth in the second quarter, leaving the door open for more interest rate hikes from the Bank of England.

The FTSE 100 fell 1.0% by 0818 GMT, while the more domestically focussed FTSE 250 index edged 0.5% lower. Both indices were on track for weekly falls.

Data showed Britain's economy grew 0.2%, against the consensus of a flat reading in a Reuters poll of economists.

"The dominant narrative ends up being that rates probably stay higher for longer," said Richard Flax, chief investment officer at Moneyfarm.

"If you were to see inflation begin to fall relatively quickly and growth to hold up, then maybe that would change the equation."

The BoE raised its key interest rate by 25 basis points to a 15-year peak of 5.25% last week, and warned that borrowing costs were likely to stay high for some time.

The sterling broke three straight days of losses after the data, while ten-year gilt yields also rose to a four-day high.

Miners dropped 1.4%, tracking lower metal prices and were among top sectoral drags on the benchmark index.

Energy stocks shed 1.1%, as crude prices fell.

Britain's competition regulator said it has provisionally cleared UnitedHealth Group's 1.24 billion pound ($1.58 billion) acquisition of healthcare technology firm EMIS . Shares of EMIS rose nearly 25%, hitting a ten-month high.

GCP Infrastructure Investments said it had struck a deal to acquire the assets of GCP Asset Backed Income Fund (GABI), sending shares of GCPI over 1% lower. (Reporting by Siddarth S in Bengaluru; Editing by Varun H K)