On Wednesday, Bank of England Governor Mervyn King said that it is far too early to rule out further monetary easing through purchase of assets, as the outlook for the economy continues to remain highly fragile and uncertain.

Last week, the central bank had put a halt to its 200 Billion Pounds quantitative-easing program, through which it has managed to purchase mostly British Government bonds with completely fresh BoE funds.

The plan was launched in March of 2009, and the bank also pulled back its key interest rate to an all-time low rate of 0.5%. "Although the MPC last week announced a pause in its program of asset purchases, it is far too soon to conclude that no more purchases will be needed.

The committee will keep its options open, and further purchases will be made if they prove necessary to keep inflation on track to meet the target in the medium term", said Mr. King.

The announcement was made by Governor King at a press conference, while marking the launch of the Monetary Policy Committee's quarterly Inflation Report.