Interest rates will only fall to 3.75% next year, says Santander

Dariusz Karpowicz, director at Albion Financial Advice, accused the investment banking company of playing crystal ball and warned that it shouldn't be treated as 'financial gospel.'

Karpowicz told the news agency, Newspage: 'While their prediction of a 2.75 per cent base rate by next year is certainly eyebrow-raising, we must remember that economic forecasting is often as reliable as British weather.'

'If rates were to drop that low, we could witness a property market revival that would make the roaring twenties look tame.

'Let's not count our rate cuts before they hatch. If a week is a long time in politics, a year is an eternity in economics.'