The Bank of England has decided not to extend its quantitative easing (QE) stimulus programme, which has injected £375bn into the UK financial system.
It is also keeping its key interest rate unchanged at 0.5%, where it has been since March 2009.
Under QE, the Bank creates money and uses it to buy government bonds to try to stimulate the economy.
It has previously warned economic output could contract for the last three months of 2012.
That would raise the prospect of a triple-dip recession.
Official figures for fourth quarter gross domestic product (GDP) are due to be released on 25 January.
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Dean Popplewell
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