The Bank of England will today dismiss fears that it may cut back its quantitative easing programme, reaffirming its plan to spend at least £75bn largely on government bonds.

The Bank’s Monetary Policy Committee is expected to use its meeting today to commit to spending billions more on gilts as it aims to pull the UK economy out of recession and to bring long-term interest rates down. The move comes amid growing speculation that the Bank is quietly considering cutting back the amount of money it is planning to create though quantitative easing.

For the first time since the Bank was granted independence to set interest rates in 1997, rates will not be the main focus of attention on an MPC decision day, with the committee almost certain to leave Bank Rate at its current historical low of 0.5%.

Daily Telegraph