Singapore: MAS Tightens - TDS
|Mitul Kotecha, Senior Emerging Markets Strategist at TD Securities, notes that Singapore's MAS "slightly" increased the slope of the SGD NEER band while maintaining its width and centre in line with our expectations.
Key Quotes
“We think the MAS moved from a 0.5% slope to 1%.”
“SGD was already trading close to the top of the band. We expect only a small follow through positive reaction from SGD and similarly limited outperformance of SGD rates.”
“The MAS expects core inflation to rise modestly over the near term, with the output gap positive, forecasting core CPI at 1.5-2.0% over 2018 and 1.5-2.5% in 2019.”
“Q3 GDP came in weaker than expected at 4.7% q/q annualised from 1.2% q/q previously. MAS expects a steady expansion path. GDP is expected within the upper half of 2.5-3.5% forecast range in 2018 and to moderate over 2019.”
“The MAS focused on the likely pick-up in inflation rather than being concerned about the recent softening in economic indicators.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.