The Uk Stock market plunged another 3.6% this morning on the back of the banking package. Then came the news of a 50 basis point cut in the UK, matched by the same in the US and Euroland. The market immediately rallied and is now up on the day.
Subsequently markets decided the interest rate cuts are not sufficient to stop a recession and fell again.
I don’t know where that leaves the independence of the MPC, but it was the first downpayment on the action we need to fight recession.