MPC may increase the amount of pumped into the economy by up to £50bn

The Bank of England's rate-setters will announce today whether they plan to pump up to £50bn into the economy.

Figures last month which showed that the UK economy remains in recession after six consecutive quarters of falling output have led experts to predict that the Bank's quantitative easing (QE) programme will be increased.

Other leading economies including the United States, France and Germany have already emerged from recession, increasing pressure on the government and officials to stimulate the economy.

The UK's Gross Domestic Product (GDP), fell 0.4 per cent between July and September, according to the Office for National Statistics. The figures mean the UK is now in its longest recession since records began in 1955.

The Monetary Policy Committee (MPC) is expected to hold interest-rates at their record low of 0.5 per cent for the seventh month running.

Howard Archer, of IHS Global Insight, said: "It is a stone dead certainty that interest rates will stay at 0.5%, but there could well be fireworks amid significant divisions within the MPC over whether or not to further extend the Bank of England's QE programme - and if so, by how much?"

He said the fall in GDP "tips the odds in favour" of an extension by at least £25bn, but possibly by up to £50bn.

David Kern, chief economist at the British Chambers of Commerce (BCC), said: "Disappointing economic developments reinforce the case for immediately raising the QE stimulus to at least £200 billion, with the option of an additional increase to £225 billion next month. Every effort must be made to bring the recession to an end. The current situation - in which our economy is still declining while other countries are already growing - entails serious dangers and must not be allowed to continue."

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