Peter Bolton King, the NAEA's chief executive, said that rates must fall further in order to restore confidence to the housing market.
However Bank of England governor, Mervyn King, has already hinted that rates will remain at 5.25 per cent for the next few months in order to allow inflation to stabilise.
He even went as far as suggesting that he will have to write a second letter to the Treasury to explain why inflation had exceeded the 3 per cent ceiling put in place by the government.
Despite this, Bolton-King has expressed his concern over the impact that a rate of 5.25 per cent will continue to have on the housing market in the short to medium-term.
“The situation is by no means dire but the result could be very different if the Bank of England does not act now," he said.
This assertion has been supported in part by BM Solutions' findings that a third of brokers expect rates to drop back to 4.5 per cent before the end of the year - requiring pretty swift action on part of the Bank to meet this deadline.
Half of brokers played safe though, revealing that they thought the Monetary Policy Commitee (MPC) would only action one further cut in 2008.
While the jury might be out on the number of further rate cuts, if any, we will see this year, the majority believe that 5.5 per cent will be the peak.
