Gordon Brown yesterday sent a strong signal that interest rates could be cut further this week.

Gordon Brown yesterday sent a strong signal that interest rates could be cut further this week with some analysts believing the Bank of England could reduce them by as much as 1%.

The Prime Minister made clear he could not speculate about what the Bank's Monetary Policy Committee would do on Thursday because it was independent, but he noted: "We have seen two cuts in interest rates.

"I believe the trend around the world is to respond to falling oil prices and falling food prices. That is what we are seeing at the moment."

He was asked if there might be more co-ordinated interest rates cuts and replied that was what the November 15 summit of world leaders in Washington was about.

Speaking from his trip to the Gulf, Mr Brown said: "We've led the way in recapitalising the banks. The Bank of England was involved in the co-ordinated cut in interest rates. I see the world moving closer together to work to solve these problems."

After last month's unexpected co-ordinated cut by the world's central banks, the UK's base rate was cut by 0.5% to 4.5%. America has already slashed its rate to just 1%. Yesterday, after talks in Saudi Arabia, the PM said he believed the kingdom and other oil-rich countries would agree to up their contribution to the International Monetary Fund.

Mr Brown's argument is that the fund's emergency reserves need to be expanded by hundreds of billions of dollars.

There are fears its current level of £156bn will not be enough to help states threatened by the global economic downturn. Iceland, Hungary and Ukraine have already been allocated some £18.6bn, with Pakistan expected to follow suit by requesting aid.

Mr Brown, whose office denied he has gone to the Gulf "cap in hand", was asked whether he thought the Arab states would hand over some of the $1trillion (£620bn) windfall they have reaped from soaring oil prices.

"Yes," he replied. "People want to invest both in helping the world get through this very difficult period of time but also people want to work with us so we are less dependent on oil and have more stability in oil prices. The Saudis will contribute, so we can have a bigger fund worldwide." A senior UK Government source said that during talks, the Saudis expressed concerns about becoming a "milch cow" to prop up "basket-case" economies in the world.

The PM said countries such as Saudi Arabia and China should be given more say on international bodies and welcomed news King Abdullah, the Saudi ruler, would be attending the international summit in Washington on November 15 to discuss reform of the global financial system.

Mr Brown also played down concerns over Britain's willingness to ignore poor democratic practices and human rights violations by oil-rich countries such as Saudi Arabia.

"It is important for us to work with countries that are making changes, that are showing progress and at the same time are very important to the stability of the world," he said.

The PM, accompanied on his four-day tour of the region by Business Secretary Lord Mandelson, Energy Secretary Ed Miliband and a high-powered delegation from British business, last night stopped in Qatar.