Pound rises after BoE holds rate steady and rules out quick cuts

LONDON, Nov 2 (Reuters) -

The pound rose and UK government bond yields recovered some ground on Thursday after the Bank of England held interest rates at a 15-year high.

The Bank

kept borrowing costs unchanged

at 5.25% but stressed it did not intend to cut rates any time soon.

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

The yield on the benchmark 10-year UK bond, also known as a Gilt, was last down 11 basis points (bps) on the day at 4.393%. It traded at around 4.387% earlier on.

Britain's FTSE 100 stock index was last up 1.06%, having traded 1.23% higher before the BoE decision.

(Reporting by Harry Robertson; Editing by Dhara Ranasinghe)