UK firms see smaller price rises, wage growth steady, BoE survey shows

LONDON, Oct 2 (Reuters) - British firms expect to raise their prices slightly less quickly in the coming 12 months, a survey published by the Bank of England on Friday showed.

The monthly Decision Maker Panel showed companies in the three months to September expected price growth of 3.7% in the year ahead, slowing from 3.8% in the previous survey covering the three months to August.

Expectations for year-ahead wage growth held steady at 3.4%.

The BoE is watching wage growth and price-setting by companies to gauge broader inflation risks from the surge in energy prices caused by the conflict in the Middle East.

Investors expect the central bank will increase borrowing costs by a quarter-point in November in what would be the first interest rate hike since the war in Iran started.

(Reporting by Suban AbdullaEditing by William Schomberg)