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No need to worry about Fed and ECB policy normalisation

The next stage of monetary policy normalisation in the developed world – balance sheet reduction by the US Fed, and the shift towards QE tapering in the euro-zone – will not have a major impact on Emerging Asia. Instead, domestic factors will determine the outlook for monetary policy in the region. With inflationary pressures set to remain subdued, interest rates across Asia look set to remain low for some time to come.

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