The Bank of England have held interest rates at their historic low of 0.5% and decided to inject another £50bn into the UK economy in the next three months by extending their programme of quantitative easing.

The rate hold - the sixth month that interest rates have now been at their record low - was widely expected but economists had been unsure whether the Bank would take up its option to pump another £50bn into the economy through quantitative easing having already injected £125bn through this process.

"Though there are signs that credit conditions may have started to ease, lending to business has fallen and spreads on bank loans remain elevated," said the Bank in a statement.