Market analysts have been revising their interest rate predictions downwards following the Bank of Englands first cut in more than two years earlier this week.

In a suggestion likely to please those with buy to let mortgages looking to maximise profits, one analyst has said that rates could fall to 4.5% next year, with more cuts to follow in 2009.

Others, meanwhile, have suggested that a further cut will be necessary sooner rather than later despite the Banks pre-emptive action.

“Interest rates are now more likely to fall further and faster than I previously thought. I now think that they will be cut to around 4.5 per cent by the end of next year and perhaps to four per cent in 2009”, said Roger Bootle, Deloitte economic advisor.

Howard Archer from Global Insight, meanwhile, has said that his firm expects rates to be cut twice more in the first half of 2008.