US Fed's abrupt policy shift invites Asian central banks to cut rates

The Federal Reserve’s abrupt policy shift has opened the door for interest rate cuts across Asia as inflation remains subdued and economic growth slows.

That’s a stark contrast from as recently as four months ago when the prospect of further Fed hikes was pummeling the region’s currencies and pressuring current account deficits.

Now, the focus across the region is shifting to domestic concerns as the primary driver of monetary policy. Central banks in Indonesia and the Philippines -- among the most aggressive rate hikers last year -- kept policy on hold on Thursday, as expected, citing subdued inflation pressures.

"The Fed’s big shift