Bank of England governor Mark Carney said the UK was being buffeted by "unforgiving" conditions in the global economy as latest forecasts slashed Britain's growth outlook.

Mr Carney admitted UK economic growth was weaker than the Bank forecast three months ago as policymakers kept interest rates on hold once more at 0.5%.

He said it was "more likely than not" that rates will need to rise over the next two years, but the Bank's latest quarterly report signalled a hike will now not come until the final quarter of 2017.

All nine members of the Monetary Policy Committee (MPC) voted to keep rates on hold, as they have been since March 2009, in what marked the first unanimous vote since last July.

Mr Carney said: "As one of the most open economies in the world, the UK cannot help but be affected by an unforgiving global environment and sustained financial market turbulence."

But he said the prospect was for "continued solid expansion", albeit a little weaker than in previous years.

He added the Bank will "do the right thing at the right time" on rates.

The Bank cut its forecast for growth in the UK economy for the next three years, to 2.2% for 2016, 2.4% in 2017 and 2.5% in 2018.

This is down from predictions for growth of 2.5%, 2.7% and 2.6% respectively in its November report.

It said quarterly growth rate was likely to remain at current levels until the summer.

Official figures last week showed output edging up to 0.5% in the fourth quarter of 2015 from 0.4% in the previous three months, but falling to 2.2% overall for 2015 from 2.9% in 2014.

The pound fell a cent to 1.45 US dollars and two cents to 1.30 euros as the Bank's report kicked a rate hike further back yet again.

This is good news for borrowers, but will further disappoint savers, who have seen rates remain at rock bottom levels for nearly seven years.

The Bank said inflation was set to remain low "for much of this year", with oil prices having slumped by a third since its November report.

The Bank is forecasting inflation to edge up to 0.5% in the first quarter of this year, from 0.2% in December.

But it said low oil prices and recent energy bill cuts would bring down the cost of living.

The Bank expects further "significant rounds" of price cuts this autumn and in 2017.Its latest forecasts come against a backdrop of slowing growth worldwide and

Mr Carney warned that growth in Britain's trading partners was set to remain "well below" past levels, which would hit UK exports.

But the Bank added lower oil prices were also providing a boost to the UK and advanced economies.

The minutes showed that MPC member Ian McCafferty voted to hold rates in a U-turn on his recent calls for a rise to 0.75%.

He had voted for a rise since last August, but the minutes showed his change in stance came as wage growth has slowed.

The Bank's report said employers were under less pressure to increase pay as households were being boosted by ultra low inflation, cheaper oil and energy prices.

Ben Brettell, senior economist at Hargreaves Lansdown, said: "Today's vote to leave rates on hold wasn't surprising in the slightest, but the fact that even arch-hawk Ian McCafferty backed down and voted for no change sends a clear indication that interest rates are going nowhere fast."