Reports in The Sunday Times revealed the Bank will make the gloomy prediction later this week. Just three months ago the official forecast stood at 1.5%.
Poor growth is also expected next year with the Bank reportedly set to announce growth of 1% in 2012, down from 2.1% announced in August.
Official figures published on Wednesday are also expected to show the number of 16 to 24-year-olds out of work has passed the 1m mark for the first time since records began in 1992. There is also expected to be a big rise in the headline unemployment rate.
This week's downward revision of official growth forecasts will be the eighth reduction in succession. Two years ago, the Bank predicted the economy would grow 4% this year.
Separate inflation figures to be published next week are expected to show the consumer prices index is flat at just over 5%, revealed The Sunday Times.
