For the first time Britain’s central bank will declare today that interest rates alone cannot breathe life into a moribund economy.

But exactly how 'quantitative easing' of the monetary supply – the unprecedented policy shift expected today from the Bank of England – will refloat Britain’s sinking output is still anyone’s guess.

The Bank’s monetary policy committee is widely anticipated to halve interest rates to 0.5% – 54 of 63 economists polled by Reuters predict the new record low. More keenly watched, however, will be an announcement on how the Bank will expand its balance sheet in the equivalent of applying a monetary defibrillator to the body economic.

Financial Times