* FTSE 100 edges lower
* Housebuilders boosted with rates set to stay low
* Miners hit as copper sinks to 6 year low
* RSA falls, with focus on prospect of Zurich bid (Updates with quote, closing prices)
By Alistair Smout
LONDON, Aug 6 (Reuters) - Britain's top share index edgeddown on Thursday, weighed down by weakness in miners and insurerRSA, though it briefly rallied off lows after a broadly dovishupdate from the Bank of England.
The FTSE 100 index ended down 5.32 points, or 0.1percent lower at 6,747.09 points, turning slightly lower after anegative open on Wall Street.
The index had received a boost after fewer than expectedBank of England officials voted for a rate rise, leadinginvestors to bet that borrowing costs will remain at record lowsfor longer. The central bank forecast only a slow pick-up ininflation, which now sits at zero.
The Bank of England said one of its policymakers voted tostart raising rates, but the other eight appeared in no rush todo so. Most economists taking part in a Reuters poll hadexpected two members of the Monetary Policy Committee to votefor a rate hike. Some had expected three.
The prospect of continued low interest rates boostedrate-sensitive sectors such as housebuilders andproperty-related stocks.
But they pared gains slightly after BoE Governor Mark Carneylater said that the whole MPC was moving closer to a rate hike..
"There had been widespread expectations that two or moremembers would vote for a hike at this stage....this news wastaken as dovish by financial markets," said Ian Kernohan, SeniorEconomist at Royal London Asset Management.
"Given that some members see upside risks to the inflationforecast, we still expect the balance of opinion to move infavour of a rate hike before the end of the year."
Housebuilder Taylor Wimpey rose 2.3 percent, makingit one of the best-performers on the FTSE 100 and taking it to anew eight-year high.
Barratt Developments rose 1.6 percent, also hittingits highest level since 2007. Persimmon rose 1.7 percentto touch a record high.
"Housebuilders were weak on expectations of a quicker ratehike. Now, these are being bought again as a play on ratesstaying low for longer," said Atif Latif, director of trading atGuardian Stockbrokers. "We think concerns regarding rate risesand the likely impact on the sector have been overplayed."
Top riser was Inmarsat, up 6.7 percent after it said the satellite needed to complete its new Global Xpress networkwould launch at the end of this month after its rocket partnerquickly recovered from a failure in May which upset schedules.
Among other risers, GlaxoSmithKline rose 2.7percent, boosted by bid speculation.
Commodity prices remained weak, with copper reaching asix-year low, sending miners 1.2 percent lower.
Among other top declines, RSA fell 2.7 percent.Although RSA's own pretax profit beat expectations, Swiss rivalZurich Insurance, which is interested in bidding forRSA, said it would not overpay for the British insurer.
Other insurers rose, with Old Mutual up 4.9 percentafter strong results.
Aviva also benefited from well-received earnings,adding 0.8 percent after posting forecast-beating half-yearoperating profit.
BP and Anglo American contributed toThursday's falls as they traded without the attraction of theirlatest dividend payouts, down 3 percent and 2.8 percentrespectively. (Editing by Andrew Heavens)