Sterling set for biggest 1-day fall vs dlr since '92

* Stg eyes biggest fall vs dlr GBP= since 1992 ERM crisis

* Sterling/dollar down 3.5 pct on the day at $1.4841

* UK manufacturing PMI at record low, mortgage lending falls

* BoE seen slashing interest rates further on Thursday

LONDON, Dec 1 (Reuters) - The pound slid broadly on Monday, heading for its biggest one-day loss against the dollar since September 1992, as weak UK manufacturing and mortgage data raised the stakes for a bold Bank of England interest rate cut.

The pound also took some influence from tumbling UK stock markets that reflected investor caution as shrinking output elsewhere, including the euro zone and economic powerhouse China, stoked worries about a global recession [TOPWRAP].

The low-yielding yen gained sharply as shares slumped, with UK equities .FTSE down 4.5 percent, while the currencies of countries where central banks are expected to cut interest rates later this week came under pressure, including the European Central Bank and Reserve Bank of Australia.

"Risk aversion is increasing, equities are lower and risky assets are selling off. In these circumstances, sterling tends to do relatively badly," Barclays Capital chief sterling strategist Paul Robinson said.

At 1538 GMT, the pound had fallen 3.5 percent against the dollar GBP= to $1.4841, on track for its biggest one-day percentage fall since its decline of around 5 percent when it dropped out of the European exchange rate mechanism in 1992.

The euro gained 3 percent to 84.96 pence EURGBP=, while the pound shed 4.8 percent against the yen to 139.51 yen GBPJPY=R. This pushed the pound to its weakest level in 6 days versus a basket of currencies =GBP at 82.1.

Investors are increasingly convinced that economic weakness and falling inflationary pressures will cause the BoE to plump for a substantial 100 basis point reduction in rates to follow up November's shock 150 basis point rate cut.

"The market had been coming round to thinking there would be a 100 basis point cut, but today's weak data add to the likelihood of a large move," BarCap's Robinson said.

The purchasing managers' index for the UK manufacturing sector slumped to 34.4 in November, by far the weakest reading since the series was created 16 years ago, data on Monday showed.

Separately, BoE mortgage and lending data continued to point to a housing market under major stress, with mortgage approvals falling back down to a series low of 32,000 in October and net mortgage lending an extremely weak 0.5 billion pounds in October.

"With the economic activity in the UK lurching to new depths in fourth quarter and inflation pressures all but evaporating, the Bank of England is set to make a further deep rate cut this Thursday," Bank of America economist Matthew Sharratt said in a note to clients.

(Reporting by Jessica Mortimer; Editing by Victoria Main)