There is good news in store for people on tracker rate mortgages from one data analyst.

An economist at Defaqto has forecast interest rates falling to at least one per cent by the end of next year.

Michael Baxter predicted the UK was on course for deflation on the back of low consumer demand.

He cited Marks &Spencer's 20 per cent sale as an example of the worsening condition of the economy.

"It [deflation] frequently occurs when [you] have crashing asset prices and house prices and equities are falling in tandem like they are at the moment,"Mr Baxter said.

The Bank of England's monetary policy committee cut interest rates by 1.5 per cent to three per cent on November 6th.

Interest rates were expected to be reviewed again shortly after the pre-Budget report was announced.

Some analysts have even mooted a move to zero per cent in the UK and US to get money moving again.

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  5. Number of property sales could soon go up

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