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

However, any sense of euphoria was tempered. For 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 Monday’s setting at 2.92 per cent.