According to U.K.-based Oxford Economics, markets are now pricing in a greater than 50 percent of a U.K. rate cut in 2016.
This is a turnaround given that at the end of 2015, the U.K. was seen as the next major central bank likely to hike in the wake of the Fed's move in December.
As with many advanced economies, the U.K. has had very low interest rates since the global crisis — so a comparatively small cut would take rates to zero or negative.
"I guess in the case of the U.K., negative rates could not be ruled out. It is certainly not our base case, but if say there was a global recession and also some domestic weakening in the economy, it is conceivable the MPC (monetary policy committee) would have to cut rates into negative territory," David Tinsley, U.K. and European economist at UBS, told CNBC on Friday.
The Bank of England's has held its main bank rate at 0.5 percent since March 2009. It will make its next decision on March 17.
The U.K. economy is smaller and more open than the U.S., so it might benefit more from the weakening impact of negative interest rates on the exchange rate, said Tinsley.
However, the MPC has previously been concerned that negative rates might hit financial institutions' ability to offer loans, he added.