"At the very least, the Fed's desire to step up the pace of policy normalisation has changed the conversation at many central banks globally," said Sean Callow, an economist with Westpac in Sydney. "Further monetary easing is now largely seen as only if needed to 'break the glass', not a plausible baseline. "Even if domestic conditions warrant a cut, fears about exacerbating financial market volatility will keep central banks cautious," said Tim Condon, ING's chief Asia economist. "It definitely complicates life for those central banks that either needed to or wanted to cut rates. "Condon was expecting Indonesia's central bank to cut rates twice this year, but says he is now "uneasy" about that call.

Source: Economic Times March 16, 2017 09:11 UTC