UK's benchmark FTSE 100 index edged up on Tuesday, reversing early losses, as rising healthcare stocks outweighed declines in miners, with investors keenly awaiting key economic data and the Bank of England's rate decision later this week.

The resource-heavy FTSE 100 rose 0.1% at 0828 GMT, after dropping as much as 0.3% and hitting a one-week low in early trading. The FTSE 250 mid-cap index fell 0.5%.

AstraZeneca rebounded 1% after Monday's drop following a report on the company's plans to spin off its China business, while GSK gained 0.7%, boosting the healthcare sector.

Their European peer Sanofi jumped 2.4% after it said it prevailed in Zantac arbitration initiated by Boehringer Ingelheim (BI).

Meanwhile, metals prices dipped as China's benchmark rate cuts failed to soothe investor concerns around the top consumer's economic growth, dragging mining stocks 1% lower.

"Investors overviewed it (China's rate cuts) as it's somehow insufficient to help bed in the economic recovery that was expected earlier … which is always something of a challenge," said Richard Flax, chief investment officer at Moneyfarm.

Investors, however, will be widely vigilant of domestic inflation data due Wednesday, to assess the state of economy, leading up to the BoE's policy decision on Thursday, with traders expecting another 25-basis-point hike.

"We perceive the UK economy to be facing headwinds, maybe more meaningful headwinds than other developed economies- a function of stickier inflation and the structure of the mortgage market," Flax added.

U.S. Federal Reserve Chair Jerome Powell's semi-annual monetary policy testimony on Wednesday will also be on the watchlist, after the central bank projected more increases this year.

Lookers jumped 33.7% as Global Auto Holdings is set to buy the British car dealership chain for about 465.4 million pounds (about $595 million) in cash.

Meanwhile, Ocado Group lost 5% and was the top laggard on the FTSE 100 following price target cuts by several brokerages.

($1 = 0.7824 pounds) (Reporting by Ankika Biswas in Bengaluru; editing by Eileen Soreng and Varun H K)