The global easing cycle

India will need interventions to protect financial stability

The Federal Open Market Committee of the US Federal Reserve changed its policy path significantly in 2019 to counter rising economic uncertainties, largely due to the US-China trade dispute. The Fed reduced rates thrice in 2019 compared to four hikes in 2018. The latest projections suggest that the US central bank will keep interest rates unchanged in 2020. Meanwhile, the European Central Bank further pushed its deposit rate into negative territory and restarted the asset purchase programme. The Bank of Japan continues to pursue its asset purchase programme to support growth and prices. The policy stance of large central banks