LONDON Bank of England experts advocated cutting interest rates this month for the first time for 18 months because of fears of a global economic slowdown, AFP quoted the bank as saying on Wednesday.

Releasing the minutes of its December meeting on interest rates, the bank said two members of its rate-setting committee voted to cut the cost of borrowing to stave off an economic slump.

The other seven members of the Monetary Policy Committee voted to keep rates on hold at six percent for the 10th consecutive month, and their viewpoint prevailed.

But signs that bank experts are starting to make the case for rate cuts could pave the way for a reduction in the new year.

It was the first time any member of the MPC had voted for a reduction in rates since June 1999. The pound responded by slipping slightly to 1.6328 euros and 1.4673 dollars.

"To cut rates would be a preemptive move which would help sustain business and consumer confidence in the event of spillover effects from a deteriorating international environment," argued the two interest rate 'Doves', Deanne Julius and Sushil Wadhwani.

Other committee members argued that although the world economy was probably slowing faster than expected, the news on the British economy was more mixed, with household consumption still perky.

Since the meeting, official figures have shown inflation ticked up in November to 3.2 percent on an annual basis, while unemployment continued to fall but at a slower rate than in previous months.