Why are interest rates at crisis levels?

But does the supposed delicate state of the economy reflect its true condition, or merely our perception? What will be the traits that might emerge in the future that will lead us to conclude it is no longer so brittle? My conclusion is that the economy is not now so fragile it cannot cope with the first steps being taken to normalise monetary policy. Indeed, I feel strongly that beginning to edge interest rates higher will not undermine the evolving recovery, but will make it more robust. A recovery that can be maintained only on the basis the bank rate remains at 0.5% will become...