Sterling slips after BoE minutes suggest no hurry to tighten policy

LONDON, Oct (HKSE: 3366-OL.HK - news) 8 (Reuters) - Sterling retreated from a two-week high against the dollar after minutes on Thursday from a meeting of the Bank of England's rate-setting committee suggested policymakers were in no hurry to raise interest rates.

The nine-member Monetary Policy Committee voted 8-1 to keep rates at a record-low 0.5 percent this month, as expected, and most saw a relatively soft outlook for inflation.

Sterling dipped to $1.5323 after the release, having traded at $1.5345 beforehand and down from a two-week high of $1.5373 struck earlier in the day. For the day, it was broadly unchanged, holding onto robust gains made a day earlier.

The euro traded 0.5 percent higher at 73.71 pence , having dealt at 73.605 before the minutes were released.

Investors pushed back chances of the BoE's first interest rate hike to the last quarter of 2016 after a shocking U.S (Other OTC: UBGXF - news) . jobs report last week prompted them to price out a lift off by the Federal Reserve this year.

But some players believe that the shift in rate hike expectations may have been overdone given a pick up in wages and after data on Wednesday showed a jump in industrial and manufacturing output in August. (Reporting by Anirban Nag; editing by Patrick Graham)