Hum... IMO the government lending interest rate should be set strictly at the highest value that still ensures bank healthy and should have absolutely no concern for the overall economy.

Inflation should be managed directly by fiscal policy. Having your central bank do it is a wishful fantasy that only serves to concentrate wealth and create instability with years-long hidden feedback loops. And oh, it also serves to excuse politicians out of their responsibility.

But then, I don't see how something that only serves to make rich people richer and make excuses for politicians can ever change. So I'm not holding my breath.