* Sterling dips vs dollar ahead of BoE minutes * Pound may fall if more MPC members call for QE * Retail sales data at 0830 GMT expected to show decline By Nia Williams LONDON, May 23 (Reuters) - Sterling dipped against the dollar on Wednesday and looked vulnerable to the release of minutes from the latest Bank of England policy meeting, that could show policymakers are leaning towards more stimulus to boost UK growth. Retail sales data for April, due at the same time as the BoE minutes at 0830 GMT, is expected to weaken from the previous month and could add to speculation of another round of asset purchases later in the year. Last month David Miles was the only policymaker on the nine-man committee to vote for more quantitative easing. If the minutes show his looser policy stance gaining support the pound could break below a recent two-month low against the dollar. It was expected to hold firm against the euro given concerns about a messy Greek exit from the euro zone. Sterling, also called cable, fell 0.1 percent on the day versus the dollar to $1.5743, near last week's trough of $1.5732, which was the lowest level since mid-March. Traders reported supporting bids from an Asian central bank. "If the vote is 7-2 (in favour of keeping QE unchanged) we would look for cable to come lower," said Sara Yates, currency strategist at Barclays Capital. "If we get a vote of 8-1 there is room for cable to recover slightly versus the dollar but I would look to fade any rally. Without any concrete progress on the euro area I would favour selling sterling and the euro against the dollar." Yates said the market would also be looking for clarification on why the BoE halted the QE programme in May yet forecast medium-term inflation would be below the 2 percent target in last week's Inflation Report. Quantitative easing, which is potentially inflationary, involves printing cash to buy bonds and boost growth and tends to crimp demand for a currency. The euro was steady against the pound at 80.49 pence, having hit to a two-week high of 81.02 pence on Tuesday. The common currency was knocked lower during Tuesday's New York trading session after a news wire quoted former Greek Prime Minister Lucas Papademos as saying preparations for a Greek exit were being considered. European Union leaders meet later in the day, although market players were sceptical they could make much progress in tackling the debt crisis that also threatens to engulf Spain. "We still like short euro/sterling positions given the events out of the euro zone. We look for better entry opportunities to sell euro/sterling," BNP Paribas analysts said in a note. (Editing by Toby Chopra)

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