The Bank of England needlessly slowed the economy misjudging the economic outlook last year. So far this year it has resolutely refused to ease as the virus has damaged prospects. I have consistently advised a different approach to reserve asset ratios, liquidity and guidance on lending to banks.
A cut in interest rates out of a normal meeting is not a good idea. What we need is practical measures to help banks and markets see businesses through temporary cash flow problems, and to allow growth in the economy suffering the virus shock. I welcome the Bank’s belated cancellation of the counter cyclical buffers. I argued against this wrong move when they made it at the end of last year.