Economists question success of Bank of England's £200bn money-printing plan

Minutes of a discussion hosted by the Bank and the Centre for Economic Policy Research, and attended by economists from the City and academia, revealed that some participants believed its ability to stimulate the economy would be "limited."

The minutes revealed: "Some participants questioned the efficacy of the Bank's asset purchases. The introduction of quantitative easing in Japan had not generated a rise in bank lending.

"And some believed that the Bank's asset purchase programme would have only a limited impact on an economy with few willing lenders and weak private sector demand for credit.

Others however argued that QE was having a "demonstrable impact" on the economy. Members of the Bank's Monetary Policy Committee have said there are increasing signs that QE is working, although its precise impact may never be known.

Broad money supply has not increased as hoped, but the MPC has pointed to the sharp rise in equity prices and the demand for corporate bonds as signs that QE is working. The idea is that those institutions selling gilts to the Bank stimulate the economy by reinvesting the proceeds in other assets.

Economists were downbeat about short-term prospects for the UK economy, the minutes said, despite the widely-held belief that the recession ended in the fourth quarter of 2009. There were mixed messages for the economy yesterday.

Figures from the Office for National Statistics (ONS) showed construction orders rose by 2.2pc in November, and by 1pc quarter-on-quarter in November. Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said the data were a sign the sector is stabilising after the "hefty falls of the past few years." Construction has been one of the hardest hit sectors during the recession.

The Conservatives claimed that the number of personal insolvencies has hit 180,493 in this recession, five times higher than in all previous recession since records began. "Brown's legacy of debt is holding back our recovery. We can't go on like this," said John Penrose, shadow business minister.

Other data from the ONS showed British households spent less on average per week on clothing and footwear in 2008 than at any time since 2001-02.