As expected, the Bank of England raised its key rate by 25 basis points to 1 percent from 0.75 percent. Following the decision, the pound dropped against its major counterparts.

The pound was trading at 162.13 against the yen, 1.2515 against the greenback, 0.8460 against the euro and 1.2228 against the franc around 7:04 am ET.

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