Singapore’s mas likely to keep rates on hold next week, says ScotiaBank
Source: FxWire Pro - Commentary / 07 Apr 2017 07:51:16 Europe/London
The Monetary Authority of Singapore (MAS) is expected to hold its benchmark interest rate at the monetary policy meeting scheduled to be held late next week with an expansionary budget unveiled on 20 February, maintaining the rate of appreciation of the SGD NEER policy band at zero percent with the width and the centerline of the policy band unchanged, Scotiabank reported.
In the past monetary policy statements, the MAS rarely adjusted the width of the band while re-centering the band only when the prevailing SGD NEER level was far away from the mid-point of the band. More importantly, the MAS have never adopted a negative slope.
Further, MAS’ core inflation decelerated to 1.2 percent y/y in February from 1.5 percent the previous month, owning to lower services and food inflation. In a statement dated March 23, the city-state’s monetary authority expected MAS core inflation to average 1-2 percent for the whole of 2017 compared to 0.9 percent the previous year.
"We would buy USD/SGD with a target of 1.43 in the run-up to June FOMC meeting, while staying with our short SGD/INR position," the report commented.© FxWire Pro 2020. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.