UPDATE 1-Tobacco stocks help FTSE 100 counter easing Fed rate cut bets

Muvija M and Shashwat Awasthi

* FTSE 100, FTSE 250 up 0.1%

* Imperial Brands up on dividend plans, share buyback

* BAT biggest support to main index

* Woodford Patient Capital Trust slides after media report (Adds company news items, analyst comment, updates share prices)

July 8 (Reuters) - London's FTSE 100 inched higher on Monday as tobacco stocks jumped on Imperial Brands' buyback and dividend revision plans, but gains were capped by dampened hopes of a hefty rate cut by the U.S. central bank.

UK blue-chip index rose 0.1% by 0800 GMT after opening lower in choppy trading, while the FTSE 250 mid-cap index also reversed early losses.

Imperial Brands added 2.8% and sat at the top of the main UK index, after the tobacco company announced plans for a 200-million-pound buyback and said it would revise its dividend policy. Rival British American Tobacco rose 1.7%, providing the biggest boost to the index.

Miners added to the broader gains as they snapped a three-day losing streak. The mining index had slipped last week after China's top steel mills formed a group to probe a record surge in ore prices.

The overall mood, however, was subdued following sharp declines in Asian markets as strong U.S. jobs data last week put off bets that the U.S. Federal Reserve would give in to calls for aggressive policy easing.

Markets.com analyst Neil Wilson said there was still a strong conviction in the market that the Fed would cut rates this month, but warned that it was unlikely to happen.

"The market has got this wrong - but the Fed now has a tough job as to not cut would act like a de facto tightening," Wilson said.

British Airways owner International Consolidated Airlines Group lost 1.3% after it said the Information Commissioner's Office (ICO) could impose a penalty of 183.4 million pounds ($229.5 million) for the theft of customer data from the airline's website last year.

Asset manager Schroders was the biggest FTSE 100 loser with a near 2% drop after brokerage Jefferies cut its rating on the stock.

Money manager Neil Woodford's listed trust, Woodford Patient Capital Trust, inched close its record low with a 5% fall, after the Sunday Times reported https://www.thetimes.co.uk/article/new-blow-to-neil-woodford-as-benevolentais-va l u e - s l i d e s - 2 l 3 j d v p k t that tech firm Benevolent AI, one of the stockpicker's biggest holdings, was preparing to slash its valuation. ($1 = 0.7990 pounds) (Reporting by Muvija M and Shashwat Awasthi in Bengaluru Editing by Saumyadeb Chakrabarty)