New Delhi, March 23 -- Five major central banks-the US Federal Reserve, the European Central Bank, the Bank of England, the Reserve Bank of Australia, and the Bank of Japan-met this week to deliver their rate decisions. Four of the five opted to pause and continue with existing policy rates. Two smaller countries-Sweden and Switzerland-also opted to pause.

Given the economic chaos unleashed by the US-Iran war, this was not a surprise. But it is a complete turnaround from the start of the year when, as ECB president Christine Lagarde put it, monetary policy was "in a good place". As recently as one month ago, the UK was expected to cut rates; there was a decent chance the US Fed would cut rates, too; and Japan was on a rate-hike cycle. Bu...