A Panic cut in Interest Rates

The media seems unanimous that the 1.5 per cent cut today is the first such a large cut since 1981. Looking at the Bank of England statistics page, here, I cannot see such an event in 1981. In 1980 there was a cut of 2 per cent on 25th November, from 16 to 14 percent namely a reduction of 12.5 per cent. Again on 11th March 1981 there was another 2 per cent cut to 12 per cent namely a reduction of 14.285 per cent. Today's cut of 1.5 per cent from 4.5 per cent to 3.0 per cent is an historically massive decline of one third or 33.333r per cent and is totally without precedent and clearly an act of pure blind panic! End result a Footsie plunge of 258.32 points at the close. Read my earlier post at the time of the announcement to gauge whether I am surprised at this response! One thing is clear, there are none in any positions of power or influence within the UK who have the first idea as to how to handle the crisis they have delivered. As I have repeatedly blogged (Blears please note) this is a House Price Crisis not a Banking Crisis. For good measure it is now a political crisis as well!