Rates should be cut soon

The base rate of interest should be cut to 3.5 per cent as soon as possible so that mortgage interest rates fall.

That is according to Assetz, which said that it wants to see the Bank of England's Monetary Policy Committee (MPC) acting sooner rather than later.

It comes after it was revealed that inflation has reached three per cent, potentially causing the MPC to maintain rates.

However, Stuart Law, chief executive of Assetz, said that the MPC should not use the inflation figure as an excuse for not cutting rates.

"The Bank of England must not use the spike in inflation announced yesterday as an excuse to hold back interest rate cuts again next month," he commented.

"[The] hike is largely due to rising food prices and energy costs and was not unexpected.

"I strongly suggest the Bank of England now lowers base rates very quickly to 3.5 per cent," continued Mr Law.

A cut to the base rate of interest would help to bring mortgage interest rates down for borrowers.

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