THE Bank of England has slashed its UK growth outlook and kept interest rates on hold as darkening gloom over the global economy pushed further back the prospect of a hike.

All nine members of the Monetary Policy Committee (MPC) voted to keep rates at 0.5 per cent, where they have been since March 2009, in the first unanimous ballot since last July.

In minutes of its latest decision, the MPC said it was "more likely than not" the base rate would need to increase in two years.

However, its quarterly inflation report signalled a rise may not come until the final quarter of 2017, with inflation set to remain low "for much of this year" and the worldwide economy weakening.

The Bank cut its forecast for growth in the UK economy for the next three years, to 2.2 per cent in 2016, 2.4 per cent in 2017, and 2.5 per cent in 2018.

Its latest predictions come against a backdrop of slowing growth worldwide and plunging oil prices, which have fallen by more than 70 per cent since a peak in the summer of 2014.

The MPC's report said: “Global growth has fallen back further over the past three months, as emerging economies have generally continued to slow and as the US economy has grown by less than expected.”

However, it added lower oil prices were providing a boost to the UK and advanced economies.

The MPC added: “Growth in the UK’s main trading partners should continue to be supported by the boost to real incomes and low commodity prices.”

The minutes showed MPC member, Ian McCafferty, voted to hold rates in a u-turn on his recent calls for a rise to 0.75 per cent.