HALISTER1: Risk of a Contractionary Singapore Budget Underpriced: Citigroup

Risk of a Contractionary Singapore Budget Underpriced: Citigroup

(Bloomberg) -- A net fiscal impulse, cost-cutting measures for businesses and households, and subsidies to households are the areas which will have implications for Singapore monetary policy, Citigroup analysts write in note today.
  • SGD now stronger than mid-point of its undisclosed NEER trading band
    • A contractionary Budget may skew the balance of risks in favor of SGD shorts, Citigroup says
  • USD/SGD up 0.3% to 1.3705
  • EUR/SGD up 0.3% to 1.5317
  • NOTE: The Singapore government will present its 2016 budget in parliament at 16:00 local time; see link here
  • See Singapore budget preview here
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Source: BFW (Bloomberg First Word)

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