When it comes to talking tough but holding fire, the European Central Bank is world champion. While eurozone growth was sluggish, it left its main interest rate unchanged for more than two years until December 2005 – without using the word “pause”. Might its acting skills now be deployed again as growth peaks?

An unexpected surge in eurozone inflation to 2.6 per cent this week and a risk that the annual rate will soon hit 3 per cent, appeared to strengthen the case for lifting interest rates from the current 4 per cent. The bank aims to keep inflation “below but close” to 2 per cent. The US Federal Reserve’s caution about its next move after Wednesday’s interest rate cut could have increased the room for manoeuvre by the ECB.