The Bank of England is expected to cut interest rates on Thursday.
Most economists in a Reuters poll on 3 October expected the bank to cut rates by at least a quarter point to 4.75%.
Since then, money markets show an increasing number of traders expect a half point cut.
The National Institute of Economic and Social Research says the British economy shrank by 0.2% in the third quarter, following a contraction of 0.2% from May to July.
However, the NIESR said a rate cut was unlikely to provide an immediate boost to the economy.
It says the Bank of England should work with the British government to ensure companies and households could continue to borrow.
