Bank likely to predict 1.5 per cent cut in output

The Bank of England will warn this week that Britain is on the brink of a deep recession after a marked worsening of the economy in recent months. Separate research published today shows consumer confidence has plunged to record lows as the impact of the credit crunch is felt. According to the survey by the British Retail Consortium (BRC), 84 per cent of people believe Britain is already in recession.The Bank is expected to slash its growth estimates in its quarterly assessment of the economy on Wednesday, raising the prospect of still further interest rate cuts - some economists believe rates could fall to as low as 1 per cent.