The National Association of Estate Agents (NAEA) is putting pressure on the Bank of England''s Monetary Policy Committee (MPC) to cut the base rate of interest.

MPC members are due to meet tomorrow (March 6th) to announce the base rate for the month.

It currently stands at 5.25 per cent and most analysts believe that it will not fall further for at least one more month.

However, the NAEA is urging the MPC to announce an early cut in a bid to boost the housing and mortgage markets.

"There is an ongoing lack of confidence in the housing market and the Bank of England needs to act fast to stop it stalling," said Peter Bolton King, NAEA chief executive.

"We are seeing people squeezed as a result of the credit crunch, as the banks expect bigger deposits and better credit ratings. In addition, nervous banks are keeping their interest rates well above the base rate.

"This means consumers, especially the vital first time buyers, are caught in a double trap of having to find a bigger deposit and fund higher payments against the backdrop of rising inflation," he continued.

The base rate was cut twice between December and February.