A member of the Bank of England's monetary policy committee (MPC) has called for interest rates to be reduced.

David Blanchflower said significant cuts may be required in order to help stave off an economic recession.

Speaking at Kent University, he warned that the UK could otherwise be set to face a "deep and long-lasting"period of negative growth.

He commented: "My view remains that interest rates do need to come down significantly and quickly."

The MPC voted unanimously in favour of an interest cut last month, which saw the cost of borrowing reduced by 0.5 per cent to 4.5 per cent.

Some analysts are predicting a similar reduction at this week's meeting, such as Howard Archer of Global Insight.

He stated that if the MPC does cut rates by this amount, they could possibly fall to two per cent next year.

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