BofE Didn't Get the Memo

The Bank of England cut rates to 1.5% this morning and might as well have admitted that they didn't go far enough.

"“Business surveys suggest that the pace of contraction in activity increased during the fourth quarter of 2008 and that output is likely to continue to fall sharply during the first part of this year,” the Bank said in a statement accompanying the historic decision."

Why they didn't go lower is a fantastic question but in any case increases the relative attractiveness of U.S. equities, on the assumption this this economy will be able to grind out of recession faster than the boys and girls on the other side of the pond.

If you're inclined to be optimistic about government-led economic recovery, then you'll agree that Obama did a fantastic job in his CNBC interview last night. It's still a little or a lot too Robin Hood for me but this economy need a hero.