The Bank of England has delivered a bigger-than-expected boost to the ailing economy through its latest round of quantitative easing.

Bond buying was upped to £150bn, with its asset purchase target now increased to £875bn after a unanimous vote.

The bond buying, which is above the £100bn predicted by economists, will run throughout next year, the Bank said, but could be sped up depending on conditions in markets.

The benchmark interest rate was held at 0.1 per cent.

Quilter Cheviot head of fixed interest research Richard Carter says: “The amount was larger than expected but overall this will come as little surprise to markets following the recent move by the UK government to lock down large parts of the country.

“The impact on the economy as well as the extension of support measures such as the furlough scheme will lead to a further rise in government borrowing and gilt issuance and the Bank’s QE program is crucial in keeping borrowing costs under control. It is also another reminder of the crucial support provided to investors by global central banks as markets continue to digest the US election results.”

Kensington Mortgages capital markets and digital director Alex Maddox adds: “The announcement of £150bn of QE will be well received, as the latest lockdown is going to put yet more pressure on the economy.

“Now the Bank of England needs to work on how to get this support through to mortgage customers, since mortgage rates from the high street have been increasing recently.”

With Brexit still looming and a second national lockdown coming into force today, the stimulus round comes at a key time for the economy, which Bank officials believe will now contract in the fourth quarter.

Chancellor Rishi Sunak is due to make an announcement on the future of support later today. The Sun newspaper reports that he is planning to let the furlough scheme continue for parts of the country under the strictest rules, even after the national lockdown ends.