"If the Bank of England cuts interest rates next week, many will breathe a sigh of relief, " he added.

BBC: NEWS | Business | Mortgage approvals drop further

If, as many economists forecast, the Bank of England cuts short-term rates to 2%, British savers could be tempted by the allure of government bonds yielding 3-4%.

ECONOMIST: Buttonwood

And nearly all analysts now expect the Bank of England to make further sharp cuts in UK interest rates in the new year.

BBC: Bank considered bigger rate cut