The central bank has now endorsed a $586 billion (382 billion) spending package to stimulate the economy.

The tax cuts and spending package in tomorrow's pre-budget report will provide a short-term boost to the economy, but there are much deeper problems to be addressed.

So far he has announced the biggest peacetime spending package on record, a £190 billion stimulus package to rescue the economy from the impact of the coronavirus.

Government economists expect that the tax reforms and a recently agreed spending package will create a $873 billion budget deficit this year, compared with a $666 billion deficit last year.

Gilt futures eased after stock markets rallied amid hopes that central banks will initiate further stimulus spending packages to support stuttering economic recovery.