Birmingham Chamber of Commerce and Industry is calling for the Bank of England Monetary Policy Committee to lower interest rates by 0.25 per cent on Thursday.
It follows big cuts in America as it looks to shore up its own economy.
The Federal Reserve knocked 1.25 per cent off the cost of borrowing during the second half of January in response to the threat of a recession in the United States.
But don't expect the BoE to follow suit, says, Katie Teasdale, BCI policy adviser.
She noted: "We do not anticipate that the MPC will mirror the Federal Reserve with huge cuts, and nor would we advocate that they do so.
"Birmingham businesses need stability and continuity. A cut of more than 0.25 per cent would send out the wrong message - that our economy is in crisis. That is not the case.
"The economy, while slowing, is performing better than expected with UK growth at 0.6 per cent in the final quarter of 2007."
She went on: "A Chamber survey shows that the majority of Birmingham businesses remain upbeat about economic prospects with three quarters of manufacturers and 80 per cent of service sector firms predicting increased turnover and profitability over the next 12 months.
"A small cut at this time should act to bolster consumer confidence and spending, particularly following well publicised concerns around falling house prices.
"We urge all parties to bear in mind that talk of economic downturn can become self-fulfilling and that we must not talk ourselves into recession. However, there are very real concerns around upward inflationary pressures."
However, Peter Mathews, president of the Midlands World Trade Forum, believes there is scope for a half-point cut in interest.
He said: "The MPC has a reputation for being over cautious. If there is anything less than a half a percentage point cut on Thursday then I would question whether its members are close to the realism of the working business world.
"It is important they get an understanding of how business works and what are its needs. Of course, inflation is a concern for everyone, but we need MPC members who are more connected to business so they can be understanding of our concerns."
Louise Bennett, chief executive of Coventry and Warwickshire Chamber of Commerce, said many were hoping for a half per cent cut in the UK but felt that a quarter per cent drop was more realistic.
She said: "The conflict for the MPC is apparent. Inflationary pressures, due in the main to food and energy prices rising, have a huge bearing on their decision.
"But there is also a need to inject life into the housing market at the same time as giving business a boost after an indifferent start to 2008.
"I believe a steady fall in rates - starting with a quarter per cent cut on Thursday - will be the course steered by the Bank of England.
"We have seen two larger cuts across the Atlantic recently and that is not the course of action I would expect here. Nevertheless, a cut is required."
Howard Archer, chief UK and European economist at Global Insight, said there was considerable pressure on the Bank of England to take bold action to try and head off a major downturn.
But he added: "Despite calls for a 50 basis point reduction, we expect the Bank of England to trim interest rates by 25 basis points to 5.25 per cent.
"We suspect that only a further very sharp fall in equity prices and last minute data indicating that the UK growth outlook has started to deteriorate sharply could possibly prompt a 50 basis point cut."
He said Global Insight expected rates to fall to 4.5 per cent by the end of 2008.