Analysts: England bank rate cut unlikely

LONDON, May 1 (UPI) -- Bank of England officials have signaled that further cuts in its key lending rate -- now at 5 percent -- are unlikely next week, various analysts said.

"That the bank appears to believe the worst of the credit crunch may be over suggest that they will be more reluctant to cut interest rates," Howard Archer, chief economist at Global Insight, told The Times of London Thursday.

Analysts are scrutinizing the bank's recent Financial Stability Report, which estimated subprime mortgage losses of $170 billion, calling larger predictions -- one as high as $1 trillion -- "potentially significant overestimates."

Along with the report released this week, Deputy Gov. John Gieve issued a statement saying, "The most likely path ahead is that confidence and risk appetite will return gradually in the coming months."

The Bank of England's Monetary Policy Committee meets to review lending rates next week.