A week after the European Central Bank launched a major new round of monetary stimulus, the Federal Reserve, too, enacted another cut in interest rates. It was right to do so.

The normalisation of monetary policy seems more distant than a few months ago. The sooner central bankers reconcile themselves to this, the better.

Any doubts that the global economy is worsening should be dispelled by the OECD's updated Economic Outlook, published on Thursday.


The multilateral think-tank sharply downgraded its growth projections. It now thinks the global economy will grow by 2.9 per cent this year, 3 per