Analysts have spoken out in opposing view as to whether the Bank of England should cut the interest rate. Also according to a think tank, the loans sector may benefit more from the central bank, buying bonds.

Other analysts have said that the Bank of England should not cut the interest rate, below its present rate of 1.5 per cent – already at an all time low in the bank’s 315-year history. The pros of doing this would be that loans, such as mortgage loans would be cheaper for borrowers and hopefully boost the economy, as more consumption is likely to take place.

The policymakers have apparently found these benefits effective for the economy and have been a main reason to the consecutive rate cuts that have occurred in the past four months.

However an opposing view, coming from the Building Societies Association, which represents many of the UK’s mortgage providers; have suggested that making mortgage loans cheaper – by lowering interest rates – would not justify the effects that savers would face.

Martin Weale at NIESR, one of the UK’s leading economic thin tanks, said: "If the Bank of England is a buyer the corporate bond market will be more liquid. My sense is that this policy will be much more effective than a half point or a full point rate cut."