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MAS unlikely to flatten slope of Sing $ policy band to zero: Citi

Bank's economist sees "granular" easing should macroeconomic conditions continue to worsen

Published Mon, Mar 28, 2016 · 09:50 PM

Singapore

CITI Research has said that, with its focus on the stability of the policy band and a weakening-but-still-positive growth outlook, Singapore's central bank will not ease to flatten the slope of the Singapore dollar's policy band to zero.

But this is a close call, and odds tilt in favour for a more "granular" easing should macroeconomic conditions continue to worsen, Citi economist Kit Wei Zheng wrote in a note published on Monday.

"This is not a conviction call, and rests on the view that the MAS (Monetary Authority of Singapore) has placed a higher premium on stability of the policy band following the calibrated easing moves in April; and the economy is not yet in a recession that would justify a zero slo…

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