The Bank of England is widely expected to cut interest rates this week amid fears that the UK economy is heading towards a recession.
The Monetary Policy Committee is expected to reduce the official cost of borrowing by 0.25 per cent to 4.75 per cent when it announces the result of its two-day rate setting meeting on Thursday.
But some economists have predicted the MPC will go further and slash rates by 0.5 per cent following some dire economic data in the past few weeks. The reduction has been supported by the West Midlands chairman of the Institute of Directors.
Richard Boot said: “Up until now the IoD has been cautious about reducing interest rates, due to rising inflationary pressures. However, the unprecedented nature of the financial crisis now requires a robust response.”
And he is also calling for urgent action on empty property business rates and the proposed Supplementary Business Rates to prevent a further erosion of confidence and an accelerated economic slowdown.