Bank of England set to announce rate call

The Bank of England will unveil a decision on interest rates later Thursday amid speculation that it may also pump billions of extra pounds to help the country out of a deep recession.

The BoE's monetary policy committee will announce the outcome of its monthly meeting at 1200 GMT, and is widely expected to keep its key lending rate at a record low 0.50 percent, where it has stood since March.

Some economists expect that the committee will decide to extend its so-called quantitative easing (QE) plans, under which it creates money by buying bonds from commercial institutions to try and kick-start lending.

The BoE has created 175 billion pounds in new cash to boost lending to businesses and individuals. However, this programme of asset purchases was completed last week.

"The market is divided on the outcome (of Thursday's MPC meeting), with expectations spanning from nothing to another 50 billion pounds worth of purchases," said Calyon analyst David Keeble in a note to clients.

In March, the BoE had launched a radical policy of quantitative easing -- a process effectively seen as printing new money -- as it sought to lift the nation out of a steep downturn that was caused by the global financial crisis.

Meanwhile in Frankfurt later Thursday, at 1245 GMT, the European Central Bank (ECB) was also expected to hold its benchmark lending rate unchanged at a record low 1.0 percent.