Glaxo has been funneling cash back to the U.K. daily from banks in euro-zone countries as part of its strategy to reduce exposure to risks of a possible breakdown of the European monetary system.

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Yet the evidence suggests that, unlike the euro-zone periphery, the U.K. is struggling to rebalance.

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Nor can Mr. Osborne blame the euro crisis for the U.K.'s predic-ament when several euro zone members are performing better.

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What's more, members of the bank's Monetary Policy Committee have made it clear during the past couple of weeks that yet more bond-buying could be in the cards when the current round ends, especially if the euro-zone crisis keeps pressure on the U.K. economy.

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The U.K. isn't a member of the 17-member euro zone and has been an attractive alternative for investors whenever worries about the currency bloc's finances flare up.

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Meanwhile, the United Kingdom (U.K.), a member of the European Union but not of the euro-zone, has already reported that its economy has been negative for two straight quarters, officially in a recession.

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Moody's cut its forecast for the U.K. economy, saying Britain's economic and fiscal outlook have weakened due to the euro-zone crisis, though it kept its negative outlook and triple-A credit rating on the country.

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