Bank set to hold fire on more money-printing

The City expects the Bank of England to shelve plans to pump billions more into the recovery this week, in the wake of the strongest quarter in five years for the British economy.

The Monetary Policy Committee is set to hold fire on expanding its £375bn quantitative-easing programme amid growing doubts among members, such as the Bank's deputy governor, Paul Tucker, over its effectiveness.

It is also holding on for more evidence over the impact of its £80bn Funding for Lending Scheme. A poll of City economists expects no change in policy on Thursday by a majority of two to one, with interest rates also expected to be held at their 0.5 per cent record low.

The surprise 1 per cent growth for the economy in the third quarter, albeit boosted by one-offs such as the Olympics, could also stay the committee's hand, amid tentative signs of revival in consumer and mortgage lending during September.

The FLS, which allows banks and building societies to access cheap funds in return for growing their lending to the economy, now has 30 banks and building societies signed up.