Setting 'initial title' to %d does not track $PWD properly

I'm running bash, and I want to have the last directory in my current path as the title of the terminal. I put %d as the 'initial title' setting. But the directory shown in the title is not the last directory of the current path, it's the last directory in the previous pwd before changing it using cd. e.g. if pwd is /home/mderouss/Projects , and I do 'cd ..', then the terminal displays 'Projects' not 'mderouss'.