India, Aug. 7 -- European stocks were mostly higher on Thursday, with U.K. markets underperforming ahead of the Bank of England's interest-rate decision.

The central bank is widely expected to announce a quarter-point interest rate cut despite concerns about rising inflation.

In economic releases, Germany's exports grew for the first time in three months in June despite falling shipments to the U.S., data from Destatis revealed. Exports advanced 0.8 percent on a monthly basis in June, reversing a fall of 1.4 percent in May.

Separate set of data revealed that German industrial output decreased 1.9 percent on a monthly basis in June, bigger than May's revised 0.1 percent drop and also worse than economists' forecast of 0.4 percent fall.

E...