A financial analyst has suggested that interest rates in the UK could possibly fall to as little as one per cent.
Vicky Redwood, an economist at Capital Economics, stated that the Bank of England is likely to implement further rate reductions over the next few months.
Indeed, she said the possibility of rates falling to an even lower level in the near future cannot be ruled out either.
Ms Redwood was speaking in the wake of the monetary policy committee's decision to cut interest rates by 1.5 per cent to three per cent.
"The fact that the bank moved so boldly was a bit of a surprise but we still think that interest rates are probably going to fall a lot further," she commented.
Ms Redwood added that the most recent rate cut should increase confidence as long as policymakers follow through on their promises to do what they can to help the economy.