Bank of England deputy governor Mervyn King bucked the trend earlier this month to vote for an increase in interest rates.

Eight members of the bank's nine-strong monetary policy committee (MPC) voted in favour of keeping the cost of borrowing at a 38-year low when they met on July 3 and 4.

According to the minutes of the meeting, new member Marian Bell was one of those to favour holding rates steady at four per cent.

This was Miss Bell's first meeting since replacing Sushil Wadhwani, who stepped down after a three-year term on June 1.

But Mr King, deputy governor responsible for monetary policy, voted against and opted for a 0.25 per cent rise.

The MPC agreed the arguments for raising rates in the near future remained relevant.

In particular, it said the record low rates were continuing to stimulate the economy while the outlook had clearly strengthened since the rate was reduced to its current level.

Deciding to keep rates on hold once more, the MPC cited the uncertain strength of the global economic recovery while volatile equity markets played a part.

The committee said: "The downside risks might now be greater as a consequence of increased financial market nervousness set alongside the existing longer-term economic imbalances in the United States."

The pace of the UK economic recovery was also questioned.

Interest rates are expected to rise in the near future as the global recovery continues. But economists now believe a move could be delayed.

HSBC's John Butler revised his forecast from August to October, while Simon Rubinsohn, chief economist at fund manager Gerrard, believes the MPC could now hold off until next year.