LONDON, Nov 2 (Reuters) - The Bank of England held interest rates at a 15-year peak on Thursday, as it kept up its fight against the highest inflation among the world's big rich economies, and it stressed that it did not expect to cut them any time soon.

MARKET REACTION:

STOCKS: Britain's benchmark FTSE 100 index pared gains very slightly after the decision but was still up 1.1% on the day .

FOREX: Sterling was last up 0.44% at $1.2204. It was trading around 0.35% higher before the BoE decision at $1.2193.

Bonds: Benchmark 10-year UK bond yields were last down 12 basis points (bps) on the day at 4.383%, little changed from before the decision.

COMMENTS:

JEREMY BATSTONE-CARR, STRATEGIST, RAYMOND JAMES, FRANCE:

"Soft economic activity and inflationary pressures persist, but the fact that these are no worse than forecast contributed to today's conclusion to hold the rate steady. The rise in longer dated government bond yields, in large part the consequence of global factors, has served to tighten financial conditions and done a share of the MPC's (Monetary Policy Committee) work for it."

"The question going forward is how long this standstill will last for – with financial markets expecting it to be a considerable period of smooth sailing. The door for future rate hikes still sits ajar, and the MPC will likely remain vigilant for further fluctuations and risks in the months ahead."

PETER DOHERTY, DIRECTOR, HEAD OF INVESTMENT RESEARCH, ARBUTHNOT LATHAM, LONDON:

"Of all the major central banks, the BoE has the toughest path forward. Economic data is cooling, the labour market is tight, but inflation is still sticky."

"In the short to medium term the ability of the (U.S.) Federal Reserve to hike relative to the BoE constrains the pound against the dollar."

"When you look back a couple of months, what was priced in was continued hikes from the BoE and cuts next year from the Fed. What might turn out could be very much the opposite of that."

GEORGINA TAYLOR, FUND MANAGER AND HEAD OF MULTI-ASSET STRATEGIES, INVESCO, LONDON:

"Given we are probably at peak rates, we have to line up the central banks in terms of who might move to cuts and we think probably the Bank of England will need to be the one major central bank that moves first. They need to focus on the growth-inflation mix and the fact the economy is deteriorating."

"Across bond markets, gilts are the place where there is probably most value coming through so we have added some exposure."

(Reporting by the Europe markets team, Compiled by Alun John; Editing by Dhara Ranasinghe)