Sterling hits 2-mth high as dlr resumes slide

* Sterling reaches 2-mth high vs broadly weaker dollar

* BoE comments prompt paring of early rate hike view

* Sterling up 0.5 pct at $1.9849

LONDON, June 26 (Reuters) - Sterling rose on Thursday to a two-month high as the dollar resumed its decline a day after the U.S. Federal Reserve disappointed the market by giving no hint on when it would start raising interest rates.

That helped offset comments from Bank of England policymakers which caused markets to slightly pare expectations of early interest rate rises, a move that would normally be negative for the pound.

Governor Mervyn King said the BoE wanted to avoid a marked economic slowdown that might pull the inflation rate below target. [ID:nL26128061]

"On balance, we see no clear signs from today's testimony that the MPC (Monetary Policy Committee) is about to raise rates in the near-term," said Matthew Sharratt, an economist at the Bank of America.

"The message the BoE appears to be trying to get across is that it is in data-watch mode and that it requires both an observed slowdown in economic activity as well as stable wage growth to prevent it from raising rates."