UK shares advance after BOE strikes dovish tone

* FTSE 100 up 0.1 pct after BOE decision

* Amec Foster cuts dividend, shares slump

* Egypt security concerns impact Thomas Cook (Xetra: A0MR3W - news)

* Energy stocks fall on stronger dollar (Recasts, adds detail and quote)

By Kit Rees

LONDON, Nov 5 (Reuters) - Britain's stock market rose on Thursday after the Bank of England as it predicted little pick-up in inflation as it held interest rates steady, prompting investors to push back expectations for a rate hike.

Seven of the eight policymakers voted to keep interest rates unchanged at a record low of 0.5 percent, and the central bank reduced its forecast for economic growth for this year and 2016.

"Today's Bank of England interest rate announcement was more dovish than markets were expecting," Darren Ruane, head of fixed income at Investec Wealth & Investment, said in a note.

"Indeed there was some speculation that (policymaker) Ian MacCafferty would be joined by at least one further dissenter, but this did not occur and the inflation profile has been reduced."

The FTSE 100, which had been in negative territory earlier in the trading session, rose after the BOE decision to 6,416.35 points, up 0.1 percent at 1314 GMT.

At the top of the index was drugmaker Astrazeneca (NYSE: AZN - news) , which advanced 4.2 percent after liftings its 2015 forecasts.

Among the biggest fallers was retailer WM Morrison, which shed 3.8 percent after reporting another drop in quarterly underlying sales.

Resources companies also fell, as oil giants BP and Royal Dutch Shell (Xetra: R6C1.DE - news) retreated on a stronger dollar.

The dollar rose following Federal Reserve chief Janet Yellen's comments on Wednesday pointing to a possible interest rate hike in December. A strong dollar often makes commodities denominated in the greenback, such as oil, less affordable for holders of other currencies.

Mike van Dulken, head of research at Accendo Markets, said that questions about global growth and fears that a Fed rate hike could be too early and might hamper global growth were also pulling commodity stocks lower.

Among mid-caps, Amec Foster lost around 22.5 percent after it cut its dividend in half, pressured by a drop in oil prices.

Thomas Cook fell 6.8 percent after Britain suspended flights to and from the Egyptian holiday resort of Sharm al-Sheikh. Authorities are investigating the possibility that a bomb planted by Islamic State militants caused last weekend's crash of a Russian airliner over the Sinai Peninsula.

The FTSE 250 mid-cap index - to which Amec Foster and Thomas Cook belong - declined 0.3 percent.

Holiday company TUI Group also took a hit, with its shares down 0.6 percent.

"The situation in Egypt is clearly of concern for tour operators such as Thomas Cook," said Darren Sinden at Admiral Markets.

The FTSE 100 is down by around 2.4 percent since the start of 2015, and some 10 percent below a record high of 7,122.74 points reached in April (LSE: 0N69.L - news) . (Additional reporting by Sudip Kar-Gupta; Editing by Alison Williams)