The National Association of Estate Agents is urging the Bank of England to wait before cutting interest rates.

The Bank of England's monetary policy committee (MPC) has been urged to wait before reducing interest rates.

Inflation could increase if the rate of borrowing is cut too soon, the National Association of Estate Agents (NAEA) argues.

Consumers are likely to "spend money they do not have" should interest rates be lowered, Peter Bolton King, chief executive of the NAEA, told the Move Channel website.

An early interest rate cut in the new year might also be a threat to the "soft landing" currently being experienced by the property market, according to the NAEA.

"Timing a rate rise incorrectly risks sacrificing a sizeable medium to long-term problem for the minor benefits of a short-term gain," Mr Bolton King stated.

The MPC will meet next Thursday to vote on the next interest rate move. At present, the underlying rate of borrowing stands at 4.5 per cent.

It is widely expected that the rate-setting committee will vote in favour of freezing interest rates for the fifth consecutive month.

The last interest rate cut was announced in August last year when the MPC voted for a reduction of 25 base points.