By Chris Dorrell Interest rates could fall to as low as three per cent next year as the Bank of England slashes the cost of borrowing in response to lower inflation, according to new forecasts. Economists at Capital Economics, a consultancy, think the Bank will likely have to cut interest rates much faster than markets expect in response to plummeting inflation. “The UK is on the cusp of switching from having a bigger high inflation problem than other major economies to having a bigger low inflation problem,” they said. Having peaked at over 11 per cent in October 2022, inflation has fallen dr…