Secured and unsecured loans are set to see interest rates fall even further, it has been predicted.
Hargreaves Lansdown has suggested that the Bank of England will reduce the base rate to one per cent by February.
And head of research at the firm, Mark Dampier, explained that this could be followed by even further cuts as these are "unprecedented times".
Commenting on the possibility of a zero per cent rate, he said: "They have been that in Japan for years although they are marginally above that at the moment, they could easily go there in America so it is not inconceivable."
The Bank's monetary policy committee voted unanimously to reduce the rate to three per cent this month - with the 1.5 per cent reduction representing the biggest change it has made since being given rate-setting independence in 1997.
It is due to make its next decision on Thursday December 4th.
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