Fed makes it easier for Asia-Pacific central banks to stay dovish

Singapore

BY dallying over raising interest rates, the US Federal Reserve made it easier this week for central banks in the Asia-Pacific to stay dovish, with Indonesia lowering its rates on Thursday and Australia and New Zealand saying they could cut later.

Signalling slower and fewer rate increases at its policy meeting on Wednesday, the Fed left investors feeling that any tightening would be glacial at best.

Nowhere has a more ultra-easy monetary policy than Japan, where the central bank said on Wednesday it would persist with its massive asset-buying and negative rates, while at the same …