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Asian Central Banks Tinker With Policy Transmission To Rev Up Growth

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Central banks in Asia's emerging markets are introducing new policy tools to get lenders to cut borrowing costs and move credit more quickly through their slowing economies.

Analysts say the recent moves by countries like India, Indonesia and the Philippines will help short-term market rates more closely reflect changes in benchmark policy rates, although desired results may not come as fast as some would like.

"The changes in the Philippines, Indonesia and India are all aimed in the same direction: making monetary transmission stronger," said Vaninder Singh, Asia economist at RBS in Singapore.

"This, in my view, is a good development as it helps improve the monetary infrastructure within Asia."

Importantly, these steps also help reduce the need for central banks to deploy unconventional and controversial policies, such as quantitative easing or negative rates.

Ah yes getting credit flowing more quickly.... what could possible go wrong, I'm sure they'll avoid the unconventional measures!!!!

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It might just be allowing credit where it wasn't before, the Philippines is strongly Catholic and anti-debt, India is undergoing rapid transformation, Indonesia will need Islamic Sharia debt for its population, all of them have a huge population bulge their economies aren't equipped to deal with...

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