Interest rates in the UK could fall below one per cent, it has been suggested.
According to Capital Economics, the Bank of England's decision to cut the official base rate by 1.5 per cent "should help the economy start to recover".
And UK economist at the research consultancy Vicky Redwood stated that further reductions may be on the way.
"We think rates could fall to at least one per cent, we certainly wouldn't rule out them falling below that," she said.
However, Ms Redwood added that the effects of the cut will be limited, as lenders are unlikely to pass it on in full to those seeking secured and unsecured loans.
The Bank's monetary policy committee (MPC) voted to reduce its official base rate to three per cent as a result of a decreased risk of inflation.
It followed a 0.5 per cent cut last month and marked the greatest reduction the MPC has made since being given independence in 1997.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.