European stocks were mixed after the Bank of England maintained its rate at 0.5%, defying market expectations that the central bank would step in to calm the post-Brexit vote economy.

Most analysts had expected a 25 basis point cut to a historic-low benchmark rate after keeping the rate at 0.5% for more than seven years. The central bank's Monetary Policy Committee voted by a majority of eight to one to maintain the rate, with one member voting for a cut to 0.25%. The central bank said that "the improved resilience of the core of the U.K. financial system and the flexibility of the regulatory framework" had allowed the post-vote impact to be dampened rather than amplified.

The central bank also said that most members of the committee expect the monetary policy to be loosened in August.

All European stock indices dipped immediately after the BOE announcement, paring their gains earlier in the day. As the day progressed, however, most markets more than offset the losses.

The Dax in Frankfurt rose 1.4% to 10,068.30 and in Paris the Cac 40 gained 1.2% to 4,385.52. Euro Stoxx 50 climbed 1.3% to 2,963.07. The FTSE 100 was the only index that continued to drop since the midday BOE announcement, and fell 0.2% to 6,654.47.

A dip after the BOE announcement was noted among the U.K.'s home builders and property developers. They since regained their losses. Berkeley  (BKGFY) closed the day up 0.1%, Taylor Wimpey (TWODY)  up 0.3%, and Barratt Developments up 0.7%.

The central bank noted the impact the referendum has had on the housing market.

The MPC's minutes stated, "Regarding the housing market, a preview of the June [housing market] survey had pointed to a marked weakening in expected activity and prices following the referendum result. Bank staff had lowered their forecast of housing investment significantly and had revised down the near-term outlook for house prices."

U.K.'s banks enjoyed gains regardless of the BOE announcement. Royal Bank of Scotland  (RBS)  rose 2.5%, Barclays   (BCS)  rose 2%, Lloyds   (LYG)   gained 1.2%, and Standard Chartered (SCBFF)   rose 1.4%.

In Italy, UniCredit rose more than 6%. UniCredit chairman Giuseppe Vita told Reuters the bank will have to consider a capital increase because asset sales concluded this week will not be enough to satisfy the European Central Bank.

Swedish bank SEB rose more than 1% after its second-quarter operating profit beat expectations

BASF (BASFY) rose 2.8% in Frankfurt after a Bloomberg report that Monsanto (MON)  might acquire its agricultural solutions unit. Monsanto is fighting off a bid from Bayer and Monsanto CEO Hugh Grant said earlier this month it was talking with other deal partners. Bayer was recently up 0.6%.

Recruitment consultant Hays rose over 5% in London after forecasting that full-year operating profit will be ahead of expectations at £180 million ($238.2 million) because of currency wins.

GlaxoSmithKline   (GSK - Get Report)  was up 0.6% Jefferies upgraded the stock to buy from hold with a price target of 2,000 pence. The shares plunged after the BOE announcement and continued to drop.

Advertising company WPP fell 1.36%, plunging after the BOE announcement and losing the gains after Liberum analysts cut their organic growth forecasts for the next three years but said currency benefits from the weaker pound will more than offset the decline. It reiterated its hold recommendation and a "cautious stance on agencies."

The pound was recently up 1.42% at $1.3334.