The Bank of England announced on Thursday it would extend its quantitative easing (QE) program by injecting another 50 billion British pounds(79.31 billion U.S. dollars) into the economy, bringing the total up to 325 billion British pounds(513.5 billion U.S. dollars).

The capital injection is intended to give a boost to local economy.

According to a news release by the bank of England, "in the light of its most recent economic projections, the Bank's Monetary Policy Committee (MPC) judged that the weak near-term growth outlook and associated downward pressure from economic slack meant that, without further monetary stimulus, it was more likely than not that inflation would undershoot the 2 percent target in the medium term".

The MPC also said it would maintain interest rates at their record low of 0.5 percent, as it has done since the QE program started in March 2009.

"Consumer Prices Index (CPI) inflation has fallen from its September peak, declining to 4.2 percent in December. Inflation should continue to fall sharply in the near term," said the MPC.

The MPC's latest inflation and output projections will appear in the Inflation Report on 15 Feb.