The Bank of England comes to the economy's rescue

"The moralising posture that the Bank of England has had during the first six months of the subprime crisis is disappearing quickly," writes editorialist Pascal Aubert. "At the worst times during the financial crisis, the British central bank distinguished itself from its American and European counterparts by refusing to inject liquidity when it was needed. On several occasions, its governor, Mervyn King, justified the lack of action by explaining that those who took imprudent risks must not have realised that they would have to pay for their greed. ... Virtue has had to bow before economic reality, which has become preoccupying across the Channel. ... But Mervyn King and the Bank of England have only lost their pride in this affair. Which is little when compared with the risks the British economy would have taken if the monetary authorities had refused to budge in the name of principle and their credibility."

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