Sterling slides vs euro, dlr; UK data fails to lift gloom

* UK retail sales data fails to prevent broad sterling slide

* Euro at 84.80 pence <EURGBP=>, pound at $1.4758 <GBP=>

* Sterling loses more than 1 pct on the day vs euro, dlr

LONDON, Nov 20 (Reuters) - Sterling shed more than 1 percent against the euro and dollar on Thursday as traders bet that surprisingly resilient UK retail sales won't be enough to slow the pace of interest rate cuts widely expected in the months ahead.

Indeed, interest rate market traders upped their bets on how aggressive the Bank of England will have to be on rates to counter the deflationary effects of a deteriorating economy and increasingly fragile financial markets.

Underscoring the global nature of this crisis, implied interest rates and government bond yields across the world tumbled on Thursday, while the sharp fall in the value of bank stocks led by Citigroup's 15 percent slide (C.N) helped push the UK FTSE 100 index down 3.5 percent .FTSE.

The Swiss National Bank stunned markets by lopping a full percentage point off its key policy rate, after which UK rates markets moved to price in BoE policy rates troughing at around 1.35 percent early next year from 1.4 percent earlier.

Earlier on Thursday, official data showed that British retail sales fell by only 0.1 percent in October from the previous month, far less than the 0.9 percent decline economists had forecast.  Continued...