REFILE-UK shares fall after Carney steers clear of looser policy bias

(Refiles to correct typo) * Britain's FTSE falls 0.2 percent * New BoE governor ties backs inflation-rate targeting * Strong start to year saw FTSE ripe for dip - traders * Burberry slides on China advertising ban By Alistair Smout LONDON, Feb 7 (Reuters) - Britain's blue chip shares fell on Thursday after the incoming Bank of England governor dashed hopes for an immediate easing of monetary policy when he takes charge, and corporate news hit banks. Central bank governor-designate Mark Carney reaffirmed his faith in flexible inflation rate targeting, pouring cold water on nominal GDP targeting which he had previously floated as an alternative. Nominal GDP targeting would justify higher inflation rates while growth was below target. Sterling rose after Carney showed little bias towards immediate looser monetary policy, wrongfooting many investors who had expected him to be more dovish. "Carney isn't a huge believer in throwing money at the markets, and once he starts to put his policies into action, maybe he's got other policies up his sleeve which he will bring out as and when he becomes the chief," said Justin Harris, head of trading at Guardian Stockbrokers. He said a tighter view on inflation would make the UK's debt problem more protracted. "But while comments like this don't tend to have a long-term effect, they are enough to see the market ease off a little." The FTSE 100 was down by 15.32 points, or 0.2 percent, at 6,280.02 at 1217 GMT, lagging major European peers. The FTSE has been the stand-out performer in Europe year to date, having seen its best January since 1989, and was ripe for profit taking, traders said. While euro zone banks climbed 0.7 percent in morning trade, UK banks lost 0.7 percent, with company news also hitting the sector. RBS fell 1.5 percent, with traders saying that the fall-out from a $615 million dollar fine for rate rigging was still being felt. "There's all the negative press around RBS at the moment, and Lloyds are down in sympathy with them, which is dragging us," Will Hedden, sales trader at IG Index, said. "Initially they were up after the settlement, but you always wonder whether we're at the end of the road on these scandals, and you'd be a brave man to say they are." Burberry Group was the worst performing blue-chip stock, tumbling 4.6 percent, with rival luxury goods companies also falling as traders cited a Chinese advertising ban on certain expensive gift items as hurting the sector. However, mobile phone operator and market heavyweight Vodafone provided basic support to the index. It rose 1.8 percent, bolstering the index by 6 points alone, after the group maintained its outlook for the year and analysts expected the firm to dodge earnings forecasts cuts, despite weak third-quarter sales. Additionally, the company's Verizon Wireless stake remains an attractive lure for yield-hungry investors. "Even without the distraction of what the company aims to do with its US Verizon stake, the increase in revenues of 9 percent is further vindication of Vodafone's decision up until now to retain the stake," Richard Hunter, head of equities at Hargreaves Lansdown, said in a trading note. (Additional reporting by David Brett; Editing by Susan Fenton)