The Bank of England's monetary policy committee (MPC) will meet tomorrow (January 7th) to begin discussions over whether further cuts will be made to the base rate of interest.
Currently, interest rates stand at two per cent, after consecutive reductions were made in October, November and December of last year.
And it has been reported that the meeting tomorrow will be a historic one as a further cut could take interest rates to the lowest level in the Bank's history.
Philip Shaw, UK Economist at Investec, told the Independent: "We are still looking for a 50 basis points reduction to 1.5 per cent this month. It is possible that the MPC opts for a more aggressive 75 basis points or even 100 basis points move."
The MPC will announce its decision on Thursday January 8th.
Meanwhile, figures from Nationwide have revealed that consumer confidence fell from 51 points to 47 during December.
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