The base rate has seen no change for over six years, with the committee voting to freeze it again this week for a further month. Ian McCafferty was the only member of the Monetary Policy Committee (MPC) to vote for an increase in rates of 0.25% and has been the sole dissident in recent months.

Eyes will now be on the US this month as the Fed considers the possibility of a rate rise. Opinion is sharply divided on the need for a rise in the UK but if the US votes to increase its Federal Reserve rate it could put pressure on the Bank of England to follow suit.

Apart from keeping rates on hold, the Bank of England also lowered its estimate for UK's economic growth in the third quarter of this year from 0.7% to 0.6%.

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In its summary, the MPC noted recent stock market turmoil around the world, particularly in China, but said these had not fundamentally affected the economic outlook overall.

It lowered the UK growth forecast due to poorer manufacturing and industrial production data, it said.

Overall, however, the MPC remains optimistic about UK economic propects. It noted that unemployment was down sharply since mid-2013 and real incomes were starting to rise.

Inflation prospects also remain subdued.

Recently Bank of England Governor Mark Carney had hinted that a rate rise could be on the cards at the turn of the year but economic forecasters now believe a rise is slightly less likely.