After the Fed and ECB, A Slew of Central Banks Tune Policy

 Talking Points:

• The Federal Reserve lowered its rate forecasts Wednesday and the ECB leveraged its dovish effort last week

• While the world's largest central banks set extreme and aggressive policy, smaller players are forced to adapt

• Where BoE and BoJ (Governor commentary) are ahead; rate decisions for the SNB, SARB and BdM among others are important

A move to ease policy by the ECB and Fed leveraged strong responses from the Euro and Dollar respectively. But these major central banks' actions do not stop with their own currencies, markets or economies. Many policy authorities around the world have to determine monetary policy according to what their larger counterparts are doing. And, as these larger central banks push the extreme and distort the global policy backdrop; others are forced to take increasingly active and even drastic measures. Ahead, the BoE is unlikely to change, but the Fed influence will offer a new angle to their decision. The ECB's carry over influence will be measured through the SNB and Norges Bank's policy decisions. Meanwhile, US and global pressures will filter through to the central banks of South Africa, Russia and Mexico (which announced direct intervention at its last meeting).