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BHP shares decline to lowest since Jan 6

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Coles warns about rising wages, energy bills

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Viva Energy slumps 3%

Feb 21 (Reuters) - Australian shares closed slightly lower on Tuesday as central bank minutes signalled more interest rate hikes, while mining giant BHP Group slipped after posting a sharper-than-expected drop in profit.

The S&P/ASX 200 index slipped 0.2% to 7,337.5 after closing 0.1% higher on Monday, with weakness in broader Asian markets also weighing.

The Reserve Bank of Australia (RBA) abandoned all thought of pausing at its February meeting and signalled more rate hikes would be needed in the months ahead, minutes of the last policy meeting showed.

"I expect to see more rate hikes ahead, especially with inflation soaring to decade highs in the fourth quarter," said Josh Gilbert, a market analyst at eToro Aus Capital Ltd.

"The RBA has said rates have further to go, and that could see at least two more hikes."

BHP fell 0.3%, hitting its lowest in more than six weeks, after its first-half profit missed expectations.

The miner, however, said it expected a demand rebound in top metals consumer China, boosting iron ore prices.

That helped miners close the session 0.7% higher. Rio Tinto and Fortescue Metals Group ended the day 0.8% and 3.2% higher, respectively.

Financials fell 0.5%, with all the "big four" banks closing in negative territory. Real estate, gold and technology stocks slipped between 0.1% and 1.1%.

Among individual stocks, Coles Group skidded 0.9% after the grocer warned rising wages and energy bills would continue to push up costs.

Ingenia Communities marked its worst day since September 2009 with a drop of 13.4% after the property developer slashed annual estimates.

Building services provider Johns Lyng topped the benchmark index with a gain of 13.2% after a sharp rise in half-year profit.

Zinc miner New Century Resources jumped 42.2% after South Africa's Sibanye-Stillwater launched an unsolicited takeover offer.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index dropped 0.8% to 11,801.49. (Reporting by Rishav Chatterjee in Bengaluru; Editing by Subhranshu Sahu)