HALISTER1: Singapore’s Central Bank to Ease FX Policy in Next 12 Months: CS

Singapore’s Central Bank to Ease FX Policy in Next 12 Months: CS

(Bloomberg) -- Credit Suisse forecasts Monetary Authority of Singapore will ease policy through downward re-centering of currency band over next 12 months, according to note.
  • More likely in April 2017 than this Oct., analysts including Michael Wan write in note today; core inflation seen averaging 0.4% in both 2016 and 2017 vs govt’s medium-term forecast of 2%
  • 2016 GDP growth forecast lowered to 1.4% from 1.7%; 2017 cut to 1.2% from 1.8%
  • Maintains USD/SGD projections at 1.3600 in 3 mos. and 1.4200 in 12 mos.; USD/SGD now down 0.04% at 1.3713
  • Expects 3-mo. Sibor to rise to 1.75% in 2016 and 2.50% in 2017, which could have some negative impact on private consumption; 3-mo. Sibor little changed at 1.00292%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
MASP SP (Monetary Authority of Singapore)

People
Michael Wan (Credit Suisse Group AG)

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