European markets were on the rise on Friday morning as investors digested the Bank of England's monetary policy injections. The central bank yesterday lowered the interest rate to 0.25%, saying that it could come down further in subsequent meetings.

The bank also announced a £10 billion ($11.14 billion) corporate bond buying program and added £60 billion to the asset purchase program.

Pound-denominated corporate bonds today saw yields fall to record lows. The average corporate bond yield fell 21 basis points to 2.25%, according to figures from Bank of America Merrill Lynch.

Data out of the U.K. today pointed to a worsening of the economy. House prices in the country fell by 1% in July, according to the latest Halifax house index. There are signed that "house price growth is slowing," Halifax said.

There are also signs that the labor market in the U.K. is slowing. According to a survey by Markit and the Recruitment and Employment Confederation, the number of people placed in permanent roles decreased for the second month, with London badly affected.

The markets are also preparing for jobs figures out of the U.S. later today. But in typical European August fashion, volume was low in morning trading.

In London, the FTSE 100 was recently up 0.62% at 6,782.17.

Shares in the Royal Bank of Scotland (RBS) fell 4% in morning trading after losses in the second quarter were wider than expected following restructuring costs and provisions for litigation and consumer compensation.

The bank, in which the government holds almost 72% of the voting rights after a credit-crisis bailout, posted a £1.1 billion loss attributable to shareholders. That's up on a loss of £968 million in the first quarter, when RBS paid the government £1.2 billion to remove a constraint on its ability to pay dividends to other shareholders in the future.

In Frankfurt, the Dax had recently gained 0.34% at 10,262.61 and the Cac 40 was up 0.84% at 4,382.20.

Europe's biggest insurer Allianz (AZSEY) lost 3.9% after it reported profit had fallen 17% in the second quarter due to a high number of claims related to natural disasters and weather.

Shares in Italian investment bank Mediobanca (MDIBY) were up well over 6% after it raised its dividend. In its fourth-quarter results, net profit was up 34% year-on-year to €162.1 million ($179.53 million). Analysts were expecting €134.8 million.

LafargeHolcim was up well over 5% in Paris. The construction materials giant today announced second-quarter earnings that beat analysts' expectations. It reported year-on-year earnings had increased 2.6% to SFr1.71 billion ($1.75 billion) ahead of the SFr1.65 billion expected by analysts.

Dow Jones Industrial Average mini futures were recently up 0.27% and S&P 500 mini futures were up 0.24%.

The West Texas Intermediate was down 0.26% at $41.82 a barrel and Brent Crude was down 0.36% at $44.13 a barrel.