This calls for a measured response to changing conditions. We must maintain the appropriate balance between the need to take immediate action that is commensurate with the gravity of today’s situation, and the equally essential obligation to return to a path that is sustainable in the medium to long term.
Confidence today relies equally upon the audacity of our immediate decision and upon the soundness and credibility of our exit strategies. Any ambiguity in our medium term policy direction would delay the return of sustainable prosperity, because they would undermine confidence, which is the most precious ingredient in the present circumstances.