Accurate experiments have shown that the local inertial frame is the one with respect to which the distant parts of the universe are non-rotating. This coincidence, first noticed by Newton, later led to the formulation of Mach’s principle. It is known that relativity theory by itself cannot explain this coincidence. The introduction of a scalar ‘creation field’ into the theory is likely to improve the situation. Calculation shows that the continuous creation of matter has the effect of smoothing out any irregularities in the universe as it expands, while rotation, if present, becomes less and less. This explains the observed remarkable degree of homogeneity and isotropy in the universe.