The Bank of England is wary of withdrawing its £125bn quantative easing plan too early for fear that it will harm the economy.

"We are going to need to withdraw the stimulus.... But we don't want to do it too early and nip the recovery in the bud," said deputy governor of the BOE Charlie Bean at a regional meeting in Leeds yesterday.

The Bank surprised many commentators last week by deciding to not take up its option of using an extra £25bn on top of the £125bn that is currently been spent in the quantative easing plan.