Oct 20 (Reuters) - The probability of the Bank of England raising interest rates again has declined on the back of September's much worse-than-expected UK retail sales data, to the delight of GBP bears.

UK retail sales fell by 0.9% last month, versus a forecast decline of 0.2%, against a backdrop of broader cost of living pressures.

The weak data spurred a dovish shift in BoE rate expectations, with the chance of a hike on Nov. 2 dropping to 13%, from 19% at Thursday's close. 0#BOEWATCH

It also negatively impacted the pound, which dropped to threaten Thursday's two-week low of 1.2093 against the dollar, and slid to a 24-week low of 1.1442 against the euro.

BoE Governor Andrew Bailey, meanwhile, has reiterated that he expects to see a "noticeable drop" in UK CPI from September's 6.7% when October's number is released on Nov. 15. ING forecasts a fall to 5% or lower.

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(Robert Howard is a Reuters market analyst. The views expressed are his own)

((robert.howard@thomsonreuters.com))