The Bank begins to get its forecasts right – how about some action?

The Bank’s dose of realism today implies the authorities have at last got to where many of us have been for months. At last they admit that there will be very slow growth, no growth or even a recession over the next four quarters, and at last they recognise that inflation will soon peak.They acknowledge that the Credit Crunch remains a big problem. Why then do they take no action on interest rates or Money market liquidity to sort it out?