Six out of nine members of the BoE's Monetary Policy Committee voted to keep rates at a 15-year high of 5.25%.

Jonathan Haskel and Catherine Mann opted voted for a 0.25 percentage-point hike, while Swati Dhingra voted for a cut of the same size.

MARKET REACTION:

BONDS: Britain's 2-year gilt yield rose and was last trading at 4.28%, up from 4.24% just before the rate decision.

Ten-year yields were at 3.83%, versus 3.79% earlier, and up around 3 basis points on the day.

FOREX: Sterling was last down 0.2% against the dollar at $1.2663, compared with $1.2635 before the decision. It was at 85.38 per euro, versus 85.58 pence earlier.

STOCKS: London's FTSE-100 trimmed its gains and was last up around 0.4% on the day.

COMMENTS:

PETER SCHAFFRIK, GLOBAL MARKET STRATEGIST, RBC CAPITAL MARKETS, LONDON:

"The long and the short of it is that they (the BoE policymakers) are moving slowly and steadily away from a hawkish stance. There was one vote for a cut."

"The text suggests the views are balanced, but not as hawkish as it used to be."

PHILIP SHAW, CHIEF ECONOMIST, INVESTEC, LONDON:

"The fact that two members are still voting for higher rates suggests that there is no material, immediate momentum to lower rates and the inflation projections implicitly show that the committee as a whole believes that the speed of rate cuts implied by yield curve has been too rapid."

"We stand by our baseline call that the committee will begin to ease in June, but this is of course subject to data over the next few months. Furthermore the fact that the MPC is very divided is a good pointer to the prevailing uncertainty."

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

"It appears there no longer exists a firm commitment to keep rates at levels restrictive to economic activity. However, rate-setters are likely to tread warily and will wait to see confirmation that inflation has resumed its downward pathway before committing to policy easing."

"While the exact timing of the first rate cut remains in doubt, the point at which monetary policy is finally loosened is probably not all that far away."

DAVID MORRISON, SENIOR MARKET ANALYST, TRADE NATION, LONDON:

"What is really interesting is the voting. We got two voting for a hike and one for a cut. For two members to still be going for a rate hike, that does say to me that rates aren't coming down any times soon particularly. I would have expected more of a shift."

"There is still that hawkishness at the Bank and I think it's kind of justified. Inflation is far too high in the UK and far too sticky and is taking far too long to shift downwards."

(Reporting by the Markets Team; Compiled by Dhara Ranasinghe)