Jon the BOE and organisations like Institute of Directors, The Ernst & Young Item Club etc all see it still as the right move.
Now you could easily argue that the main causes of these problems were the very people who are saying they are the right thing to do, but at this moment you have to listen to them.
Savings are being put on hold, but a lot of people are using the benefits they are gaining from lower interest rates on mortgages to increase their payments and lower their debt - so there is a big swings and roundabouts
The key still is the banks and their unwillingness to pass on the cuts and lend more money. When we see them still "looking after their own" you can start to question what exactly their motives are.
The banking sector are really being shown for what they are
The BOE made a huge mistake 12 months ago when they put rates up to try and keep inflation in check when everyone in business was saying they needed cuts rather than hikes.
They need to do something to stimulate the economy, and they are hoping this will help.
What is the alternative for the BOE.