John Rider, Institute of Directors chairman in the West Midlands, has urged the Bank of England to pump more money into the system in order to support the uncertain recovery.

His comments came ahead of the BoE's latest monthly interest rate decision on Thursday.

The IoD wants around another £50 billion injected through quantitative easing.

Mr Rider said: "The time has come to act in view of the recent softening across a range of economic indicators.

"Given the urgent requirement to tighten fiscal policy through lower public spending, monetary policy needs to help ensure a sustainable recovery is in place before the public sector cuts take effect. Inflation is above target now, but a double-dip recession would raise the spectre of deflation. At the present time the threat to growth is more of a danger than inflation.

"And, with the fragile nature of the West Midlands economy, this region would otherwise be one of the first to suffer unless action is taken."