Credit Suisse expects MAS to ease Singapore monetary policy in April
CREDIT Suisse now believes Singapore's central bank will ease monetary policy in April, considering the weaker inflation outlook and subdued GDP (gross domestic product) growth prospects.
Even so, the labour market continues to remain tight, and a still-healthy job market will likely limit the extent of easing by the Monetary Authority of Singapore (MAS), Credit Suisse research analysts said in a note on Monday.
"With headline inflation likely to remain subdued over 2015, and growth expected to be weak at least in the near term, we believe that a reduced slope - from our (foreign exchange) team's current estimated 2 per cent per annum to around 0.5 to one per cent per annum - is the most likely outcome of the MAS's policy meeting in April.
"The next most likely outcome is a shift to an outright neutral and zero pace of appreciation. The conditions for this would be if economic activity in Q1 moderates further, perhaps a decline of more than 2 per cent quarter-on-quarter annualised, or the unemployment rate rises closer to 2.5 per cent from 2 per cent."
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
US-China competition is not worrying, lack of communication is: Gan Kim Yong
Singapore keen on ‘talent exchange’, developing AI ‘guardrails’ with the US
Social cohesion, long-term planning, political stability are imperatives for Singapore: PM Lee
Singapore’s industrial harmony cannot be taken for granted: Ng Chee Meng
Singapore’s employment growth eases in Q1, as tighter foreign worker quotas kick in for construction firms
US-Singapore FTA marks 20 years: a bridge ‘at the right place, right time’