Is that it then? Governor Jean-Claude Trichet’s soothingly dovish comments, after the European Central Bank raised interest rates on Thursday, lifted hopes that rates are now on hold. In response, regional equity markets rose while bond yields and the euro fell.

There is some basis for believing further rate rises are unlikely. For the first time, Citigroup points out, the ECB has raised rates when key purchasing managers’ indices are warning of recession. And the ECB has a mandate not just to keep prices stable but to support growth.