Central banks in Washington, London and Frankfurt have done what was expected of them by keeping policy rates unchanged. It was the only sensible thing to do. The US and parts of Europe may have returned to growth, but the recovery is brittle and rates of production still leave resources woefully underemployed. Inflation is subdued everywhere – even in the UK, where consumer prices, in spite of sterling’s fall, are up a mere 1.1 per cent in a year.

The banks were also right to signal they still expect interest rates to remain low. The Fed retained its “extended period” wording. ECB president Jean-Claude Trichet said “it is not our intention to change” market rates’ attraction to the 0.25 per cent deposit rate rather than the 1 per cent main policy rate.