UPDATE 2-UK stocks dip from recent highs as the Fed takes focus

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* Miners drag FTSE 100

* SSP group slumps on grim outlook

* FTSE 100 down 0.6%, FTSE 250 off 1.0%
(Updates to close)

By Shivani Kumaresan and Amal S

March 17 (Reuters) - British stocks ended lower on
Wednesday, retreating from recent highs as investors awaited the
U.S. Federal Reserve's latest policy statement for clues about
the central bank's stance on interest rates and inflation.

The blue-chip FTSE 100 index was down 0.6% after
posting a more-than two-month closing high on Tuesday, with
mining stocks weighing the most.

The domestically focused, mid-cap FTSE 250 index
fell 1.0% from a near 13-month peak, dragged down by consumer
discretionary and real estate stocks.

"People are just waiting to see what the Federal Reserve and
the Bank of England will say before they decide whether to
invest more money or not," said Chris Bailey, strategist at
Raymond James.

"The same debate is going to happen with the Bank of England
tomorrow in terms of will interest rates go up. I think they
will accept higher inflation rates, ultimately bond yields will
go up, and therefore pricing power and good balance sheets will
matter more for investors in individual shares."

Bank of England Governor Andrew Bailey had said on Monday
that a recent rise in interest rates in financial markets was
consistent with an improvement in the economic outlook.

While optimism about a British economic recovery has seen
the midcap index trading close to highs achieved before the
coronavirus pandemic, the FTSE 100 has fallen behind due to its
sensitivity to international markets, particularly commodity
prices, the sterling and U.S. treasury yields.

BT Group jumped 6.5%?%, topping the FTSE 100 after
its mobile and internet service provider EE won a new 5G
spectrum in an auction.

Retail investment platform Hargreaves Lansdown rose
1.5%, after it forecast profit for the year ending June 30 to be
"modestly" above analyst estimates.

Upper Crust owner SSP shed 7.9%, after it warned
that revenue from its train and bus station businesses would not
recover to pre-pandemic levels before 2024.
(Reporting by Shivani Kumaresan and Amal S in Bengaluru;
editing by Uttaresh.V and Rashmi Aich; Editing by Mark Heinrich)