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12 Apr 2013
Forex Flash: Singapore maintains policy stance - ANZ
FXstreet.com (Barcelona) - Today, the monetary authority of Singapore maintained its policy stance, "leaving the slope and width of the S$NEER policy band unchanged, with no change to the level which it is centred," says Khoon Goh, senior FX Strategist at ANZ. MAS left its GDP prospects for the current year as previously reported, with inflation forecasts lowered.
Mr. Goh add: "We expect current policy settings to be maintained so long as the labour market remains tight and core inflation stays sticky. With the S$NEER trading near the upper bound, further gains are limited to the slope of the band, which we estimate at 2% per annum. But the BoJ decision to double its monetary base means some of that additional liquidity will find its way out of Japan and into Singapore. Absent a negative global shock, the S$NEER looks set to stay close to the upper bound for a while."
Mr. Goh add: "We expect current policy settings to be maintained so long as the labour market remains tight and core inflation stays sticky. With the S$NEER trading near the upper bound, further gains are limited to the slope of the band, which we estimate at 2% per annum. But the BoJ decision to double its monetary base means some of that additional liquidity will find its way out of Japan and into Singapore. Absent a negative global shock, the S$NEER looks set to stay close to the upper bound for a while."