Australia's central bank boosted its key cash rate by 25 basis points to 3.25 percent Tuesday, the first major economy to tighten since the financial crisis took hold.
Australia's move won't lead to a stampede of other banks to hike. But it may signal the end of the era of cheap money at smaller central banks.
Australia has had a "good recession" and it is helped by the fact that it has China as its main trading partner, Graeme Maxton, chief economist at The Insight Bureau, told CNBC. But the rate rise may be a bit premature, Maxton said.
"The issue is with the lag between the time that you change interest rates and the effect it has on the economy, and that could be three to six months," Maxton said. "Increasing it now is giving a signal that everything is going to get better and people will have to pay more for their mortgages."
But central banks at major economies are likely to focus more on quantitative easing and stimulus policies than improving fundamentals when looking at monetary policy, according to Maxton.
"In the US and the UK for example interest rates are likely to have to rise because the government is going to have to issue so much debt because they're going to have to pay for all the spending they've done over the last year," he said.
While some analysts do not expect more rate rises around the world this year, ING chief international economist Rob Carnell says Norway may still surprise the markets.
"I think Norway is next," Carnell told CNBC.com, adding that the country had a very "mild recession" and has had an aggressive fiscal policy, which helped it weather the crisis better than other nations.