The next MPC meeting, scheduled to take place on Wednesday, is expected to result in the ninth interest rate-freeze at the 38-year low of 4 per cent as the stock markets continue to shock and signs of a slow-down in consumer spending.
The MPC begins its two-day rate setting meeting on Wednesday and may even mull over the possibility of a surprise cut in the cost of borrowing.
However, most economists believe the nine-member committee will continue its "wait and see" approach before taking decisive action.
Members had appeared ready earlier this summer to raise the base rate from its post-September 11 level as signs of a pick-up in the economy grew.
But the fall in the FTSE-100 Index to its lowest level for six years has knocked economic confidence and led some experts to believe that interest rates may not increase until next year.
Philip Shaw, chief economist at Investec Bank said looking ahead there was real uncertainty over the course of equities and their effect on the real economy. He said he thought UK rates would remain at 4 per cent until early 2003.
HSBC economist John Butler said that the sharp fall in equity markets, and possibly the drop in inflation, would be the key persuading factors.
However, BDO Stoy Hayward partner Peter Hemington said a quarter point cut was the answer to bolster confidence for steady growth.
