Policymakers in the U.K., eurozone and Canada have already cut rates. But India, South Korea and others were, essentially, waiting for the Fed.

Mumbai: The US Fed rate cut of 50 basis points will make it easier for the central bank in emerging countries, including India, to slash key policy rates, Crisil Chief Economist D K Joshi said on Thursday. Joshi also said Crisil is expecting food inflation to come down for FY25 if monsoon does not play spoilsport at the end of the season.

Central banks in China, Taiwan and Japan are expected to hold rates, though there’s some chance of a cut in Indonesia. They’re followed by the Reserve Bank of Australia decision on Sept 24, which is also expected to keep rates steady.

Asia’s central banks are in for some relief after more than two years of currency pain, as the Federal Reserve is set to lower interest rates by at least a quarter-point. The path for the region’s own monetary policy, though, will be bumpy from here.

The Fed's decision to cut rates by 50 basis points garnered support from 11 of 12 voting members, with a dissent from Fed governor Michelle Bowman.

The Federal Reserve cut interest rates by half a percentage point on Wednesday, kicking off what is expected to be a steady easing of monetary policy with a larger-than-usual reduction in borrowing costs that followed growing unease about the health of the job market.

Donald Trump has argued that the Fed would only cut interest rates close to the election to help his political opponents.