LONDON, May 7 Reuters The British pound edged lower against the U.S. dollar on Tuesday before the Bank of England39;s policy announcement on Thursday as markets moved to fully price in two quarterpoint rate cuts this year.

A survey of economists polled by Reuters expects the BoE to keep interest rates unchanged when it announces its decision this week, but analysts expect the central bank to leave the door open to lower interest rates as early as June.

Traders price in 53 basis points of easing this year, implying at least two quarterpoint cuts, having previously fully priced only one after inflation data last month showed prices slowed by less than expected in March.

We think they39;re going to sharpen their communication and we think another member will vote for a rate cut, said Danske Bank FX analyst Kirstine KundbyNielsen, who expects two of the ninemember Monetary Policy Committee to vote to lower borrowing costs this week.

We think the market reaction will send eurosterling higher and overall weaken the pound, KundbyNielsen added.

The pound was last down 0.2 against the dollar at 1.2534, and was at 85.86 pence per euro , down by 0.1.

The British currency has been one of the better performers among major currencies this year, having only fallen 1.5 yeartodate against the strong dollar, versus a 2.5 drop for the euro and an 8.5 decline for the yen .

But as signs emerge that inflation is falling towards target and policymakers, including Governor Andrew…