The Bank's monetary policy committee (MPC) is set to announce its decision on interest rates at midday today as well as any potential updates on its QE stimulus scheme.
Interest rates have been held at 0.5 per cent, a 300-year low, since March, with many financial analysts predicting it could remain at the same level into 2010.
The British Chambers of Commerce (BCC) has now called on the Bank to increase its QE programme, a call it rejected last month.
The stimulus scheme is so far limited to £175 billion, but many, including BCC's chief executive David Kern, want it raised significantly.
'Disappointing economic developments reinforce the case for immediately raising the QE stimulus to at least £200 billion, with the option of an additional increase to £225 billion next month,' he declared.
'Every effort must be made to bring the recession to an end. The current situation - in which our economy is still declining while other countries are already growing - entails serious dangers and must not be allowed to continue.
'Increasing QE, though critical, is not enough on its own. Urgent action is needed to boost lending, particularly to smaller businesses.
'We urge the MPC to consider a negative interest rate on deposits held by commercial banks at the Bank of England. This will penalise banks hoarding cash and provide an incentive to lend to viable, credit-worthy customers.'
Britain's economy had been expected to show signs of growth in the third quarter of this year, however surprising figures released last month showed the country was still in recession, making it one of the last remaining developed nations to return to growth.
Interest rates have been held at 0.5 per cent, a 300-year low, since March, with many financial analysts predicting it could remain at the same level into 2010.
The British Chambers of Commerce (BCC) has now called on the Bank to increase its QE programme, a call it rejected last month.
The stimulus scheme is so far limited to £175 billion, but many, including BCC's chief executive David Kern, want it raised significantly.
'Disappointing economic developments reinforce the case for immediately raising the QE stimulus to at least £200 billion, with the option of an additional increase to £225 billion next month,' he declared.
'Every effort must be made to bring the recession to an end. The current situation - in which our economy is still declining while other countries are already growing - entails serious dangers and must not be allowed to continue.
'Increasing QE, though critical, is not enough on its own. Urgent action is needed to boost lending, particularly to smaller businesses.
'We urge the MPC to consider a negative interest rate on deposits held by commercial banks at the Bank of England. This will penalise banks hoarding cash and provide an incentive to lend to viable, credit-worthy customers.'
Britain's economy had been expected to show signs of growth in the third quarter of this year, however surprising figures released last month showed the country was still in recession, making it one of the last remaining developed nations to return to growth.
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