Speculation is mounting the Bank of England may be close to cutting base rates to 0.25% and pumping at least £50bn more into the economy through quantitative easing.
Ahead of this month's Monetary Policy Committee meeting on Thursday, poor figures for jobs and retail sales on top of the world economic crisis are piling pressure on the Bank to expand its programme of quantitative easing, the Daily Mail reports.
To date, the programme has been worth £200bn or 14% of gross national product.
Ben Broadbent, who joined the Bank's Monetary Policy Committee in June, said in a recent interview that he was 'reasonably close' to voting for increasing QE.
He said the international environment was 'clearly disinflationary' which provides support for further money printing, according to the Mail.
Meanwhile, a quarter point cut in base rates to 0.25% has been widely discussed, despite arguments as to whether the cost of borrowing is already so low this would have little effect.
The speculation has already hurt savers with the best fixed rate bond deals being pulled.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week