The U.S. Federal Reserve has increased interest rates for the second time this year, with plans for further "data dependent" rises. The Fed also plans to reduce its balance sheet over time. The European Central Bank faces pressure to discontinue its support once its current program of quantitative easing ends. The Bank of England's injection of liquidity after the Brexit vote last year was temporary. Only the Bank of Japan and the People's Bank of China continue to expand liquidity.
Can Asia avoid financial instability from Fed tightening?
Regional markets should not be complacent about risks posed by reduced global liquidity