Sometimes it can seem really hard to get it right. Abraham Lincoln probably came closest when he argued that you can’t please all of the people all of the time. The Bank of England must feel exactly that way at the moment.
Has it judged the crisis correctly or reacted too late?
In the interim, perhaps the most important question is “How good is the analysis and who is in charge, the Bank or the Government?” Last week’s 1.5% cut in the interest rate took us back to 1955. It also took our interest rates below the eurozone for the first time. So panic or shrewd policy? The jury remains divided.
