Bank continues with failed policy

What do you do when a policy keeps failing? Just keep on going. From the FT....

The Bank of England on Thursday urged the Treasury to hasten plans to ease the flow of credit to companies, as it cut official interest rates to a 315-year low of 1.5 per cent.

Warning the “world economy appears to be undergoing an unusually sharp and synchronised downturn,” the Bank said it needed to cut interest rates by a further 0.5 percentage points to prevent inflation falling too far for too long.

It is an obvious question, but is this financial so great that it needs the lowest interest rates in 315 years? As far as the MPC are concerned, the answer appears to be yes.