THE Bank of England has marked down its growth expectations for the economy, saying there is little scope to raise interest rates as eurozone woes weigh on the UK's prospects.

Minutes of the Bank's latest monetary policy committee (MPC) meeting showed members voted to leave rates on hold at 0.5 per cent, by a majority of seven to two.

Most rate-setters felt gathering problems in the eurozone "had increased the risks to the durability of the UK expansion in the medium-term", while pay growth in Britain continued to be squeezed and the housing market showed signs of cooling.

The minutes also showed while the Bank expects growth for the third quarter at 0.9 per cent - stronger than other forecasters - a "slight loss of momentum" for the last three months of the year will see it slow to 0.8 per cent, amid shrinking export growth.

They cited geopolitical risks in the Middle-East and continuing tensions between Russia and Ukraine, as well as mounting evidence of eurozone stagnation.

However, for the third month in a row, Martin Weale and Ian McCafferty voted for a 0.25 per cent rate increase.

They said rate-setters ought to "look through" the current strength of the pound and low raw material costs which have kept inflation down.

Last Friday, Bank chief economist Andy Haldane warned the outlook had become gloomier and signalled the likely date for a rate hike had been pushed back towards the middle of next year.

Chris Williamson, chief economist at Markit, which provides economic business surveys, said the minutes would add further to the belief rates will not rise until next summer at the earliest.

He added: "Unless pay growth shoots up in the next couple of months, a rate rise soon after the General Election now looks the most likely scenario."