Monetary Policy Committee (MPC) member Tim Besley voted to increase the cost of borrowing by 0.25% to 5.25%, minutes of this month's meeting showed. It was the second month in a row he argued for a rate hike.

But seven members chose to keep the rate steady at 5%, saying that despite the fact that the economic outlook had continued to worsen, it was the best policy to bring inflation back to its 2% target.

The other committee member, David Blanchflower, voted for a rate cut.