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(Close): UK shares finished up slightly on Friday but the pound has lost ground as investors continue to digest the Bank of England's latest pronouncement.

On Thursday, the Bank stunned the markets by keeping interest rates on hold, following speculation that it would cut rates from 0.5% to 0.25%.

The FTSE 100 gained just 15 points, or 0.22%, to close at 6,669.24.

The FTSE 250, which is more weighted towards UK companies, closed down 60.77 points, or 0.36%, at 16,727.27.

The pound was down 1.15% against the dollar at $1.31.90. Against the euro, it was down 0.65% at €1.19.26.

Among individual shares, airlines bore the brunt in the wake of Thursday night's Bastille Day attack in the French resort of Nice.

Easyjet and British Airways owner IAG were down 2.6% and 1% respectively.

High Street mainstays Morrisons and Marks and Spencer fell 1.4% and 1.7% respectively.

Earlier in the day other European share indexes were also down, reflecting market gloom at the French terror attack.

By the end of trading they had recovered much of the lost ground. The Cac index in Paris was down by 0.3%, with the biggest faller being hotel group Accor, down by 4%.

Frankfurt's Dax was pretty much unchanged at the close - down just 0.01%.