Yesterday I said only one man could save our Chancellor from the fiscal disaster she’s trapped herself in – Bank of England (BoE) governor Andrew Bailey. Her economic credibility is in tatters, the UK economy is stalling and the country is hurtling into a £50billion black hole.

Reeves desperately needed a superhero to burst through the smoke with a plan to help her escape. Bailey was the only one we had. But he didn’t show up today. Not properly.

The BoE’s rate-setting monetary policy committee needed to take a chance and grant the nation a big juicy interest rate cut of at least 0.50%.

Lower borrowing costs would put money into the pockets of businesses and households, and cheer the country up. We’ve been miserable for too long, and that’s weighing on economic performance.

So did the MPC act? Of course it didn’t. There’s nothing heroic about this bunch.

They cut rates by the usual incremental 0.25%, shrinking bank rate to 4%. Incredibly, four out of the MPC’s nine members voted to hold rates at 4.25%. So we almost didn’t get a cut at all!

Just one voted for a 0.5% cut to 3.75%. So unless something dramatic happens, we can’t expect a cut at next month’s meeting on September 18 either. At best, we’ll get one more this year, in November. Possibly none.

Today was exactly the sort of small, steady move we’ve come to expect (and fear) under Bailey. Once again, it’s too little, too late.

The Bank was too slow to hike when inflation first exploded in 2022. Now it’s too slow to cut. The UK economy is a burning building, and Bailey turned up with a water pistol.

What did we expect?

Frankly, not much. Bailey was never going to swing in with the bold action the moment demanded. But part of me still hoped.

Yes, inflation is still stubborn at 3.6%, well above the 2% target. The Bank is right to be cautious about that. Spiralling prices have wrecked household finances, shaken business confidence and helped boot the Tories out of power. Reeves and Keir Starmer felt the blowback, and their honeymoon ended before it began.

But with growth flatlining, unemployment rising and Reeves boxed in by her own fiscal rules, the moment called for courage.

A bigger cut might have jumpstarted lending, eased pressure on business and consumers, and shown the country that somebody, somewhere, was willing to lead.

Instead, the BoE has done just enough to avoid criticism from its peers, but not nearly enough to change the game. We needed action. We got timidity.

That leaves Reeves frighteningly exposed.

The Chancellor is now completely alone in her fight to hold the economy together. Bailey isn’t going to save her. Nobody is.

She’ll struggle to cut spending as the Labour left just wants to spend, spend, spend. She’s boxed herself in with “non-negotiable” fiscal rules, and already hiked taxes to a point where they generate less revenue, not more.

We are reaching the point of no return.

Reeves will find it almost impossible to plug that £50billion hole without a big hike to income tax or national insurance. That’s now the only way to raise the sums needed to avert full-scale crisis.

But that would breach a key Labour manifesto pledge not to hit “working people”. Voters would never forgive Reeves. Or Starmer.

Today’s meagre cut won’t save the day. It’s barely a gesture. We’re now another step closer to meltdown. So is Rachel Reeves.