Quantitative easing may help pubs

Industry experts hope that a further £50bn of new money being pumped into the economy as part of the Banks of England's quantitative easing programme will benefit pubs.

The move will take the bank's total spending to £175bn, unexpectedly going over the £150bn set aside by the Chancellor.

Interest rates will remain unchanged for a sixth month at the record low of 0.5%.

A statement from the Monetary Policy Comittee read: "In the United Kingdom, the recession appears to have been deeper than previously thought," adding that, "though there are signs that credit conditions may have started to ease, lending to business has fallen and spreads on bank loans remain elevated".

Neil Morgan, head of pubs at licensed property firm Christie + Co, said: "Further quantitative easing (QE) should provide stimulus to the economy, and there are tentative signs in the wider economy that the measures already taken by the Bank of England are having a slight impact. However, it is still a case of having to be patient to see when this will flow through the banking system and fully benefit small businesses."

The Confederation of British Industry's director-general Richard Lambert said:"This must have been a finely balanced decision. The economic outlook has brightened a little in recent weeks, which might have argued for a pause in QE. But the MPC has been crunching the numbers for its quarterly Inflation Report, and must have concluded that a further policy stimulus was necessary. No doubt the Governor will reveal all when the Inflation Report is published."