* Sterling stays weak on economic concerns, BoE QE bets * BoE holds fire on Thursday, markets expect easing in April * Investors wary of sterling before UK budget on March 20 * U.S. non-farm payrolls due 1330 GMT By Anooja Debnath LONDON, March 8 (Reuters) - Sterling traded near a 2-1/2 year low against the dollar on Friday with investors focusing on concerns about the economy persist and on the chances of more stimulus next month. The pound rose against the dollar on Thursday after the Bank of England decided not to restart its quantitative easing asset-purchase programme, wrongfooting investors who had positioned for more monetary stimulus. But the gains proved short-lived as strategists said the central bank's decision to hold fire merely meant it would inject more money into the ailing economy next month and any rallies in sterling will continue to be sold into. Sterling was flat at $1.5012, not far from a more than 2-1/2 year low of $1.4965 hit on Thursday. Option expiries around $1.5000 are expected to keep the currency pinned to these levels. Strategists said the key resistance was at $1.5220, the high hit on Mar. 5. "We saw a (sterling) rally post-(Bank of England), given the fact we had a growing minority expecting quantitative easing, but coming in this morning we see sterling struggling to pull away from earlier 2-1/2 year low against the dollar," said Nawaz Ali, UK market analyst at Western Union. BoE policymakers voted to keep the bank's QE programme at 375 billion pounds and rates on hold at 0.5 percent. The decision was in line with economists' consensus forecasts, although many market players had seen a possibility of looser policy. Asset purchasing involves printing money to buy bonds and tends to weigh on a currency by boosting its supply. Sterling has been one of the worst performing major currencies in 2013, falling around 7.6 percent against the dollar. Strategists said investors had little reason to buy it with the British economy threatening to tip into recession. The loss of Britain's prized triple-A credit rating after a Moody's downgrade also unnerved investors and called into question the government's strict austerity measures and kept markets wary of the pound ahead of the March 20 budget. "Investors are getting increasingly concerned about the UK's upcoming budget. With that in mind I expect sterling to remain under pressure in the short-term," Ali said. British Prime Minister David Cameron vowed to stick to his deficit reduction plan on Thursday despite a lack of economic growth and loss of his country's top-notch credit rating, saying Britain would plunge "into the abyss" if he changed course. The euro was down 0.1 percent against sterling at 87.16 pence. Some analysts said sterling could come under pressure against the U.S. dollar after the U.S. non-farm payroll data later on Friday which is expected to show an increase in job growth. "For now, the lack of immediate easing (by the BoE) should mean that it remains hard for sterling/dollar to break significantly below $1.50; but should we see stronger U.S. data, dollar gains could threaten a move lower," analysts at Lloyds said in a note.

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