The Bank of England today decided to pump out another £50 billion sterling of stimulus cash.
The moves was a bid to haul Britain out of recession and ward off contagion from the euro zone sovereign debt crisis.
The central bank said its nine-member Monetary Policy Committee had voted to increase its asset purchase programme, known as quantitative easing (QE).
The Bank of England also kept its main interest rate at a record low 0.5%.
The bank announced that it will hike its QE stimulus policy to a total of £375 billion over the next four months, following the conclusion of its latest monthly meeting.
Both announcements had been expected by traders, resulting in muted reaction for both sterling and London share prices.
Meanwhile, the European Central Bank today cut its key interest rate to a new record low of 0.75% in a concerted attempt to help the euro zone weather the region's long-running debt crisis. Across in Asia, China also cut interest rates for the second time in a month in a surprise move that analysts said may indicate the world's second-biggest economy was slowing more quickly than expected.
Explaining the reasons for its policy decisions, the Bank of England noted today that the economy was still struggling. "UK output has barely grown for a year and a half and is estimated to have fallen in both of the past two quarters," it said.
"The pace of expansion in most of the UK's main export markets also appears to have slowed. Business indicators point to a continuation of that weakness in the near term, both at home and abroad," a statement said.
The bank added that "concerns remain about the indebtedness and competitiveness of several euro-area economies, and that is weighing on confidence here" in Britain. Though not a member of the euro zone, Britain relies heavily on the area for the day-to-day trading of its goods and services.
The bank's Monetary Policy Committee had pumped up the economy with £325 billion under its QE stimulus policy since March 2009, when it also slashed its key rate to the current all-time low.
Under QE, the Bank of England creates new cash to purchase assets such as government and corporate bonds with the aim of boosting lending and economic output.
Britain's recession is deeper than initially thought after data last week showed the economy shrank 0.3% in the first quarter after a higher-than-expected 0.4% contraction in late 2011. A recession is defined as two quarters running of contraction.
Despite QE, Britain's main banks have been reluctant to lend to businesses and individuals as banks seek to repair their balance sheets, forcing the Bank of England to take more direct action.
The bank last month loaned banks £5 billion in the first use of a facility to shield Britain's financial system from the euro zone debt crisis. It allotted the full amount on offer for six-month loans with an interest rate of 0.75%, under its Extended Collateral Term Repo Facility (ECTR).
The Bank of England's main task is to use monetary policy as a tool to keep annual inflation close to a government-set target of 2%. UK 12-month inflation fell to 2.8% in May - the lowest level for more than two years - from 3% in April.
