In the latest quarterly Inflation Report the Bank of England has warned that any economic recovery in 2010 will be ‘fragile'.

The report has also predicted that inflation will probably fall below its target rate of 1% in the autumn of this year.

Governor Mervyn King has stated that the Bank's quantitative easing programme - which recently saw an added £50bn of investment - is having a positive impact on the economy but that no more money will be invested in this programme.