DBS expects recentring of S$NEER band, equivalent to one-off devaluation of 2%
DBS economists now expect an easing in Singapore monetary policy come October, via a recentring of the S$NEER (Singapore dollar nominal effective exchange rate).
In a research note on Monday, DBS said that it foresees the band being recentred lower by half a band. "This is equivalent to a one-off devaluation of 2 per cent," said DBS.
"The USD/SGD has appreciated back above 1.42 after it corrected down to 1.3879 on Sept 17 from its previous peak of 1.4294 on Sept 8. According to our model, the USD/SGD should not deviate far from the ceiling of its implied policy band, currently located around 1.4370," the report added.
Earlier this month, the Monetary Authority of Singapore (MAS) cautioned that both headline and core inflation would come in at the lower half of their 2015 forecast ranges, of -0.5-0.5 per cent and 0.5-1.5 per cent, respectively.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Economy & Policy
Singapore’s inflation eases more than expected in March, with headline inflation at 2.5-year low
8 in 10 firms in S-E Asia, Greater China positive about business environment: UOB survey
Flexi-work request guidelines not meant to prescribe blanket outcomes for employers or influence hiring of workforce: SNEF
Daily Debrief: What Happened Today (Apr 23)
Daily Debrief: What Happened Today (Apr 24)
Daily Debrief: What Happened Today (Apr 22)