Feb 6 (Reuters) - The pound was set for its biggest

one-day fall since early January on Thursday after the Bank of

England cut interest rates as expected, with two officials

calling for an even larger rate cut against a backdrop of weaker

growth.

Sterling extended its fall, down about 1% at

$1.2373 from $1.2421 before the decision, heading for its

largest daily slide since January 2 and down from a four-week

high the day before.

Britain's 10-year government bond yield also

fell and was last down 5 basis points at 4.385%, from 4.42%

before the decision.

The BoE lowered rates to 4.50%.

The UK's FTSE 100 was last up at 1.12% having traded

around 1.15% higher before the BoE's announcement, while the

mid-cap index rose as much as 1.7% on the day.