We definitely cannot “take shortcuts”: we need to develop and calibrate the instruments with capacity to stabilize cyclical fluctuations and, in turn, reduce macroeconomic risks. 2  BIS Review 75/2007  One of these tools is a deep domestic financial system and the capital market.
We are working to rebuild credit to the private sector as a monetary policy transmission channel as our financial markets are not deep enough to channel large capital inflows. Local currency debt markets are still in their infancy, and secondary markets are not liquid enough.