Stg cuts losses v dlr after Brown's rate comments

LONDON, May 15 (Reuters) - Sterling cut losses against the dollar on Thursday after UK Prime Minister Gordon Brown said he hoped the Bank of England would be able to cut interest rates further.

By 0729 GMT, the pound had rallied from being near three-month lows to last trade steady on the day at $1.9477 <GBP=>.

The BoE has already cut borrowing costs three times since December to 5 percent to try and stimulate growth in the face of damage to the mortgage market and wider economy from an ongoing global credit crunch. But at the same time inflation pressures are continuing to increase.

"The news that the BoE didn't look like it was going to cut rates in the short term after the inflation report yesterday combined with a bad growth outlook was bad for the pound, so any hope that they may cut is good for sentiment." said Geraldine Concagh, economist at AIB Group Treasury in Dublin.

(Reporting by Simon Falush and Veronica Brown)