London: The Bank of England said Thursday it had voted to keep its interest rate at a record-low 0.50 percent, but cut economic growth forecasts and warned of global "headwinds".
The central bank`s nine-member Monetary Policy Committee (MPC) also maintained the level of cash stimulus pumping around the British economy at £375 billion ($578 billion, 516 billion euros).
Policymakers "voted by a majority of 8-1 to maintain bank tate at 0.5 percent", the BoE said in minutes published after its scheduled monthly meeting, mirroring the voting pattern from August.
The MPC was unanimous in its decision to keep the stimulus, more commonly known as quantitative easing, at the same level once again.
On a gloomy note, the bank forecast that British economic growth would slow to 0.6 percent in the third quarter after a stream of weaker-than-expected economic data.
That marked a downgrade from the previous guidance of 0.7-percent expansion -- which would have matched growth in the second quarter.
"On balance, the downside risks to world activity had probably increased," the minutes read, but noted that the Greek financial crisis was less of a threat.
The MPC instead highlighted concerns over China`s economic slowdown, which has caused severe market turbulence in recent weeks, and the prospect of an interest rate hike from the US Federal Reserve.
"The outline agreement between Greece and its euro-area partners had reduced the likelihood of further harm to activity and confidence from that source, at least in the near term," the minutes read.
"By contrast, concerns about China and other emerging economies had grown. This had resulted in sharp falls in the prices of risky assets, including in advanced economy markets, and declines in commodity prices."
Policymakers meanwhile stressed any increase in borrowing costs would be gradual and depend on the outlook.
"All members agree that, given the likely persistence of the headwinds weighing on the economy, when bank rate does begin to rise, it is expected to do so more gradually and to a lower level than in recent cycles.
"This guidance is an expectation, not a promise. The actual path that bank rate will follow over the next few years will depend on the economic circumstances."
BoE governor Mark Carney had indicated in July that interest rates could begin to climb around the turn of this year.
