Sterling dips, gilts pare losses as BoE holds rates

LONDON, April 7 (Reuters) - Sterling dipped while gilts pared losses on Thursday after the Bank of England left interest rates on hold at 0.5 percent, as had been widely expected. [ID:nLAC005839]

The details of the voting pattern and the debate among BoE policymakers will not be known until the minutes are released in around two weeks' time.

Sterling fell around 20 pips against the dollar GBP=D4 to $1.6310, while the euro edged up around 15 pips to 87.55 pence EURGBP=D4. Traders said sterling was supported ahead of the decision as some positioned for an outside chance of a rate hike.

The June gilt future FLGM1 pared losses to stand 31 ticks lower on the day at 116.29, having been 36 ticks down beforehand.

Attention will now switch to a European Central Bank decision at 1145 GMT, which is widely expected to result in a 25 basis point rate hike, and the accomapanying news conference at 1230 GMT for clues on the rate outlook ahead.

(Reporting by London Markets team)