* UK Commercial Property REIT up on potential buyout deal

* Frasers rises after share buyback program

* FTSE 100 flat, FTSE 250 adds 0.5%

Feb 12 (Reuters) - The UK's blue-chip FTSE 100 started the week on a muted note as investors braced for a data-heavy week and policymakers' remarks for cues on the path of interest rates.

The blue-chip FTSE 100 held its ground at 7572.97 points by 0918 GMT.

Pharmaceuticals were a drag, falling 1.6%, led by a 2.4% drop in AstraZeneca after Barclays cut its price target for the stock to 12,500 pounds from 13,500 pounds.

Market participants will await comments from Bank of England Governor Andrew Bailey later in the day, besides domestic and U.S. inflation data later this week, for any clues on when the interest rates might begin easing.

"While we think both (UK) wages and services inflation may surprise marginally on the upside this week, overall these data should – on this standard - provide continued confidence that second-round effects (of higher costs) are fading," analysts at Citigroup noted.

Markets are pricing in a roughly 78% chance of at least a 25 basis points (bps) cut from the Bank of England in August.

Markets took some comfort from the benchmark S&P 500 closing above 5,000 for the first time on Friday, boosted by megacap stocks, though the focus remained on the raft of economic data this week, including the U.S. inflation data on Tuesday.

The midcap FTSE 250 added 0.5%, with shares in UK Commercial Property REIT jumping 4.4% after real estate investment trust Tritax Big Box reached an agreement for a possible 924-million-pound offer for the company.

Shares of Tritax were down 2.5%.

Among other movers, Frasers Group gained 2.4% after the British retailer said it intends to start a new share buyback programme with Deutsche Numis for no greater than 80 million pounds. (Reporting by Shristi Achar A in Bengaluru; Editing by Sohini Goswami and Savio D'Souza)