Interest base rates should be cut from two to one per cent, according to a team of financial experts.
Economists from Big 4 firm PricewaterhouseCoopers (PwC) have recommended that the Bank of England Monetary Policy Committee (MPC) takes "bold steps" and cuts interest rates "in the light of the darkening economic outlook".
John Hawksworth, head of macroeconomics at PwC, said recent "gloomy economic news" justifies the potential for another full percentage point cut by the MPC later this week.
He added that alongside any interest rate cut, the Bank of England needs to do more to help households and businesses across the UK to get loans, which will help to "boost the supply of money directly".
Mr Hawksworth stated: "This kind of quantitative easing would carry the risk of generating inflation in normal times, but in current deflationary conditions this risk is outweighed by the need to prevent the economy sliding further into recession due to the credit crunch."
PwC recently announced it had acquired the executive renumeration business of Halliwell Consulting, with the new team being based at the Big 4 firm's Embankment Place office in London.
Show me Chartered Accountant jobs
