Sterling was 0.2 percent stronger at 86.02 pence per euro at 12:47 p.m. London time. The yield on the 10-year gilt was six basis points higher at 2.35 percent.
ECB officials, meeting under the presidency of Mario Draghi for the first time, cut the benchmark interest rate by 25 basis points to 1.25 percent, wrong-footing 51 of 55 economists in a Bloomberg News survey. Four predicted a quarter-point move and two expected a half-point cut.
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