One way to achieve stability is to lie down and shut your eyes. The European Central Bank must avoid being seen in this position as economic prospects darken. By failing to cut interest rates yesterday the ECB disappointed markets, ignored growing political pressure and seemed to brush aside the dangers of a long economic downturn.

The latest data show eurozone inflation continuing to decline from its May peak, while business confidence is depressed. The German economy is now close to a standstill and recovery in the eurozone is widely expected to be weak and delayed next year.

The ECB appears to believe that after its half-point cut on September 17 - in concert with the US Federal Reserve - a pause is needed to consolidate its reputation for independence and rigour in the pursuit of price stability.

It may also be anxious to avoid overreacting to the economic consequences of the September 11 atrocity. Even so, as unemployment rises and export prospects worsen, the danger of recession in Europe far outweighs that of rising inflation. There is now plenty of scope for another half-point interest rate cut - perhaps in stages - without jeopardising the ECB's main objective.

Otmar Issing, the bank's chief economist, has rightly emphasised the need to foster "trust and confidence in lasting price stability" during a time of uncertainty. But in reacting to the September 11 attack, the ECB considered a more complex balance of objectives. It should do so again.