The economy is more screwed than even I thought

The Bank of England has cut interest rates by 1.5% to 3%. My god the economy must be in freefall if they have been pushed to do this. I wonder how bad the manufacturing output figures are really... I suppose the £ Sterling will fall even further on this news, parity with the Euro by Xmas? parity with the $US by the spring?


UPDATE:
I am confused, £ Sterling has risen on the news of the 1.5% interest rate cut - up 2c against the Euro and 5c against the dollar. In fact the £ was above 1.60 against the Dollar, albeit briefly, before dropping slightly; mind you the £ was at 2.1161 against the Dollar just one year ago.

UPDATE 2:

"There has been a very marked deterioration in the outlook for economic activity at home and abroad."

That's from the Bank of England statement issued today. "Down, down, deeper and down"?