The Bank of England is under increasing pressure to drop interest rates to a record low, in order to escape the possibility of an unheard-of triple dip recession.
The financial crisis in Greece has come back under the spotlight and many believe the country will exit the eurozone by next Spring, throwing the region, including Britain, into a crisis.
The Monetary Policy Committee is being increasingly urged to consider dropping interest rates to the lowest seen in its 318 year history, as a way to try and boost the flagging economy and circumvent the problems on the continent.
Economists are widely predicting a good performance in the third quarter of 2012, but after the temporary boost provided by the Olympics, many believe the performance will once again flatten out. If this proves to be correct, it will be the worst recovery the country has ever seen, leaving it increasingly vulnerable to a triple dip recession, if Greece leaves the single currency.
Despite the series of bail-outs, the situation in Greece remains extremely precarious and the majority of experts believe the country will quit the eurozone in spring next year. This would inevitably trigger a chain of events, whilst the region fights to recover and, as a major trading partner, the UK would also be heavily hit.
If Britain were to enter a triple dip recession for the first time in its history, it is more or less certain that it would finally lose its coveted AAA credit rating, which was reconfirmed at the weekend, despite the ongoing recession.
A drop in interest rates would be welcomed by home owners, but met with dismay by savers, who have already seen the value of their nest egg eaten away by the effects of inflation. The MPC is not expected to take the action this month, but depending on survey results, may consider dropping interest to 0.25% in August.