BoE gloomy, but more rate cuts unlikely

LONDON -- The Bank of England suggested last week that the recent surprise rate reduction will not be repeated in the near term, analysts told FX Week.

The shock cut -- which left UK rates at 5% -- had sparked talk that the bank’s monetary policy committee (MPC) may make further reductions in borrowing costs. However, deputy governor Mervyn King moved to explain the decision at the publication of the latest quarterly inflation report.

"No-one pretended that the decision was easy," King told