Bank plans more QE despite positive economic signs

More quantitative easing measures are planned this week, as the Bank of England looks set to continue supplementing the economy with QE measures to help shore up the recovery, according to key economists.

Even with a strong run of important Purchasing Managers’ Index date last week, which could help the UK avoid recession at the start of the year, the BoE is still expected to err on the side of caution.

"It's really put the cat among the pigeons," said Alan Clarke, UK economist at Scotiabank. "After a temporary setback the economy is regaining momentum."

On how much money was likely to be pumped into the economy this month, Clarke said, "We believe the debate on the MPC (Monetary Policy Committee) will now be between 25 billion pounds and 50 billion pounds this month, with our official call being for 50 billion pounds,"

If reasonable growth figures continue to emerge over the coming weeks, it was also predicted that February’s QE measures could turn out to be the last, as the economy finally begins to show signs of turning the corner.