For some years now the economists and commentators have issued stern warnings about the levels of debt in the UK. We're borrowing too much, the economy is overheating with no substance behind it, we're told. On the other hand we need to be spending more to keep the country afloat. This is the delicate balancing trick the Bank of England had to address yesterday when it decided to cut interest rates by a quarter of one per cent.
The reaction has been positive. The Guardian is happy that the cut was "wise". The Times sees it as a move to indicate further cuts are on the way (and with the Euro zone enjoying two per cent, you can see the appeal). The Financial Times sounds a note of caution (you can read the first two paragraphs without subscribing), and the Independent thinks the Bank has run opted for the minimum. The Daily Telegraph says the cut was controversial. The tabloids are also interested in the story, with the Mirror deciding it's a one-off and The Sun confounding expectations by giving it the straightforward factual treatment.
Other stuff's happening too. Woman have joined the Millionaire's Club at last, notes The Guardian, with a link to its executive pay report. Yesterday's Times carried warnings about small businesses and pension reforms, and also yesterday the Independent carried a story about pressure on European interest rates.
But overall if you're an owner/manager there's only one story that counts today - interest rates have fallen. The question is whether it's enough, and if it isn't whether the Bank of England will respond next time.
