With the economy in decline, some analysts say there could be an interest rate cut later this year, with some forecasters suggesting a small reduction in November.

This could be good news for borrowers who can take heart that mortgage rates are back to where they were a year ago.
Meanwhile price comparison website Moneyfacts reveals that the average rate on a two-year fixed mortgage deal is now 6.59% - almost the same as 6.56% in August 2007 and down from 7.08% in early July.
But costs remain high as lenders charge higher arrangement fees and the better rates are only available to those with big deposits.

Higher deposits

Moneyfacts say that the average mortgage arrangement fee is now £964 compared with £803 in August 2007.
Plus, there is less competition in the marketplace, with only 3,748 products on offer compared with 13,027 in August 2007.
Borrowers are also required to put down much higher deposits than a year ago. An average of 20% is now the norm.
"The pricing is getting back to where we were a year ago, but the appetite for lending is diminished," said Darren Cook, a spokesman for Moneyfacts.
Last summer 33 lenders were offering borrowers 100% mortgages compared with just two lenders in August this year.
Buy-to-let lenders are offering 75 per cent mortgages compared with 85 per cent before the credit crunch.
Abbey, Nationwide and HBOS are among the lenders that have cut their rates.