Howard Archer from Global Insight believes that the Bank of England will have no choice but to dramatically cut the base rate of interest, as debt problems continue to grow.
Interest rates have been frozen since April as the government attempts to control inflation, but Archer says this can't last much longer.
He stated, "Rates could well be down to 4.5 per cent by the end of this year and then down to 3.25 per cent next year."