So if B decreases interest rates by 50 basis points, this will...

So if B decreases interest rates by 50 basis points, this will make borrowers more enthusiastic (if thats possible), but lenders may be far less so. The end result could be a bigger freeze in the credit system. Will it help the sub prime ARM borrowers? Not likely as their problem in the main is that they are out of teaser loans and have moved into the often punative rest rate. 50 points aint going to help them. My guess is that B wants to keep the credit markets working and I can't see a interest rate drop helping that. Maybe he'll hold the line.