The summer turbulence prompted a number of central bankers to pull their policy parachutes. Since August, base rates have been cut in seven countries, most notably by half a percentage point in the US. In markets considered a dead certainty for increases before the credit crisis, such as the eurozone, rates are now firmly on hold.

But in the hoedown about whether central banks acted correctly or not, inflation played second fiddle to fears of a financial meltdown. However, now that the panic has subsided, is the new interest rate landscape aligned with the outlook for inflation?