Sterling at 2-month low vs euro, gilts up on BoE mins

LONDON Feb 22 (Reuters) - Sterling fell to two-month low against the euro while gilts rose on Wednesday after Bank of England minutes revealed two policymakers voted in favour of a bigger increase in quantitative easing earlier this month.

The minutes showed David Miles and Adam Posen voted to raise QE by 75 billion pounds instead of 50 billion, increasing the possibility that the central bank will opt for further QE later in the year.

The euro rose 0.4 percent on the day to 84.30 pence against the pound, breaking above resistance at the late January high of 84.09 pence and the late December high of 84.22 pence.

Against the dollar sterling slid 0.5 percent on the day to a session low of $1.5710 from around $1.5770 beforehand.

The March gilt future rose and last stood 23 ticks up on the day at 115.19 after the release, having traded steady shortly beforehand. (Reporting by London Markets Team)