Like a ray of sunlight through a break in the winter clouds, the reduction in interest rates by the Bank of England offers a glimpse of better times to come for the economy. It was also a rare piece of encouraging news for the government – and we may expect ministers to make the very most of it in the weeks ahead.
As is the Bank’s custom of taking “baby steps” and the usual tendency to conform – rather than defy – market expectations, the quarter percentage point cut surprised no one, but it is still more significant than it sounds.
