Although recent concerns have boosted the risk of additional easing of monetary policy than expected, there has to be more evidence of the instability in the financial market either for a longer period of time or for spill over effects on economic sentiment for central banks to take measures.

The US Fed is in the mood of raising rates, a move that will be followed by the Bank of England. Also, no major central banks are likely to undertake further easing measures.

However, central banks such as the ECB will be the ones to further ease policy if confronted with any negative news. Lower oil prices depressing longer-term inflation outlook and dragging headline inflation in the negative territory continue to be a main concern.