As the Bank of England announced the details of its new swap facility yesterday, global policymakers were handed some good news: the three-month sterling Libor, or London Interbank Offered Rate, fell back slightly - the fifth consecutive day of decline.

However, any sense of euphoria was tempered. While the sterling Libor rate might have fallen, its US dollar counterpart has continued to rise steadily from a low of 2.54 per cent a month ago, with sharp jumps last week, culminating in yesterday's setting at 2.92 per cent.