By cutting the base rate of interest by just one per cent, the Bank or England could afford itself some breathing space, one sector commentator has asserted.
However, Trevor Williams, UK chief economist for Lloyds TSB, said that should this reduction occur this month - which would take interest rates to one per cent - there was not likely to be another cut in February.
"They're still ahead of the curve - still ahead of market expectations in other words – [they should] cut by one and then give themselves some breathing space to assess the data that's coming in," he explained.
Mr Williams added that by doing this, the Bank could assess what it wished to do with regard to any additional efforts and courses to increase money supply.
According to Nationwide, there is a 60 per cent probability that interest rates will be cut by 0.75 per cent this week.
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