There is one reality that all central bankers must face. They can change short-term interest rates, but long rates belong to the market.
The Fed started aggressively cutting the Federal Fund rate earlier this year. However, the 10 year treasury bond rate has remained stubbornly high. Bond holders haven't paid much attention to the Fed's desperate attempts to stave off recession with headline grabbing rate cuts. Those 75 basis point cuts might look good on a press release but so far the cuts have left financial markets cold. As a result, many lending rates, such as mortgages and auto loans have hardly moved in the last six or so months.
The Bank of England would do well to study this experience. Any attempt to bring UK long rates down while inflation remains high is likely to fail. The yield curve will steepen as inflation expectations rise and feed into long term rates.
Central banks who push their policy rates into negative territory, typically lose control of long rates. Monetary policy starts to have perverse effects on the economy. Rapid monetary growth, which invariably accompanies negative rates, generates inflation. At the same time, long rates increase, leading to a slowdown in investment and economic growth.
The end result is stagflation.