The Bank of England may cut interest rates for the first time in seven years and restart its quantitative easing programme on 14 July, as it grapples with the economic fallout of Brexit.

Economists polled by Reuters expect the benchmark rate to be slashed by 25 basis points to a new record low of 0.25% when the central bank’s nine-member Monetary Policy Committee announces its decision at 12pm BST.

The monetary policy meeting comes a day after Scottish First Minister Nicola Sturgeon called for fresh economic stimulus measures to stave off a recession in the UK.

The sterling plunged as much as 13% against the US dollar after Britons voted to leave the European Union, with both business and consumer confidence taking a hit as a result.

The BoE could restart its bond-buying programme, through which it acquired £375bn worth of assets between 2009 and 2012, to keep money flowing through the economy.

The central bank’s governor Mark Carney has hinted that some form of stimulus will be needed over the summer to restore confidence in the UK economy.

But some analysts say it may be too soon for the central bank to cut interest rates.