UK government crisis The Bank of England’s monetary policy committee, the forward command post for UK economic policy, meets on Thursday to set interest rates. This is undoubtedly an important moment. But the level of interest rates matters less if new credit is barely available. That is what the government must now address.
The UK is in a dire position. In the past few years, it borrowed from around the world in order to spend itself into a particularly deep hole. In the long term, the UK will not be able to be so spendthrift. It cannot, however, afford to be penitently frugal now. Companies must be able to borrow in the recession.
