Bank remains unlikely to cut economic stimulus

The Bank of England is unlikely to withdraw economic stimulus yet as the recovery from recession remains "bumpy and uneven," a senior policymaker said yesterday.

Deputy governor Paul Tucker told the CBI conference: "The headwinds remain reasonably strong. Earlier in the year I had expected, half expected perhaps, that by this time the Bank of England would start to withdraw. That seems to me, rather less likely now than it was."

The central bank has had to deal with surging inflation and a stuttering recovery since bringing interest rates down to a record low of 0.5 percent 19 months ago.

Gross domestic product figures for the third quarter are due to be released today, giving some clearer indication of how the recovery is progressing. Economists expect GDP growth to slow sharply.