Sterling slips as traders await US inflation print

(Reuters) -The pound fell against a broadly stronger dollar on Thursday as markets focused on impending key U.S. inflation data and a European Central Bank policy meeting, as well as next week's Federal Reserve and Bank of England meetings.

Sterling was down 0.2% at $1.3505 at around 1000 GMT. The pound was 0.1% lower against the euro at 86.545.

Sterling has come back from has a one-month low hit in early September after a sell-off in long-dated government bonds pushed yields to their highest since the late 1990s amid jitters over the UK's public finances.

It is part of a broader storm hitting the long-dated government debt of G7 major world economies.

Pressure is mounting on finance minister Rachel Reeves to keep Britain's deficit in check with the next budget announcement due at the end of November.

"Rising government borrowing costs, in the form of higher yields on its bonds, or gilts, mean Rachel Reeves will want to put together a tax-and-spending plan that appeases bond vigilantes," Russ Mould, AJ Bell investment director, said in a note.

Reeves said on Thursday she would look at reforming business property taxes to make it easier for smaller firms to expand, as she seeks to boost growth.

The Bank of England's monetary policy committee convenes next Thursday to deliver its next rate decision. Money markets are betting it will hold rates steady at 4%.

Elsewhere, British house prices in August experienced the most widespread falls in more than a year-and-a-half, a survey showed.

(Reporting by Lucy Raitano; Editing by Kevin Liffey)