The Bank of England unanimously voted to keep interest rates unchanged earlier this month.

According to the latest minutes released on Wednesday the monetary policy committee that sets interest rates was united in keeping them unchanged at four per cent.

The committee decided not to increase rates as it would add to inflationary pressures but they did not rule out further increases in the future.

"There was a good case for making no change to the repo rate this month, although for some members the decision was finely balanced," the minutes revealed.

Britain's economy gave a mixed picture in the weeks leading up to the decision.

There are signs of growth in industry but the housing market and household debt continue to be sources of concern along with the strong value of sterling.

"Against these stronger aspects of the UK demand picture, it was important to recognise that the higher level of sterling would weaken the United Kingdom’s net trade position," the committee concluded.

The latest data on the world economy suggested that activity was weaker than had been expected a month ago. The US recovery is broadly on track but the euro area is still sluggish.

The biggest concern was over the state of the housing market.

Members of the committee believe the growth in property investors - particularly those who want an alternative retirement income - are partly driving the boom because of the disappointing performance of the equity market.

Home loan approvals had fallen but it was new purchasers that again underpinned borrowing as property investors are increasingly using their savings.

Future rises in interest rates would hit unsuspecting first time buyers hardest.

"Households might not have taken the prospective increases in interest rates fully into account," the committee warned.