Singapore set to forgo easing to save tools for 'Brexit', China

[Sammyboy RSS Feed]

An honorable member of the Coffee Shop Has Just Posted the Following:

Analysts predict Singapore's currency will weaken to S$1.40 to the US dollar by end-December, from S$1.3438 as of 7:24 am local time on Wednesday. The currency tumbled 6.6 per cent last year, its biggest decline since the Asian financial crisis in 1997.

Singapore's central bank will probably refrain from easing policy when it meets Thursday, saving its ammunition to fight a faltering global economy and political shocks that may spark turmoil later in the year.

The Monetary Authority of Singapore, which manages the economy through the currency rather than setting interest rates, will maintain its current stance, according to 12 of 18 economists surveyed by Bloomberg.

The central bank eased policy in January and October last year, both times reducing the slope of the band it uses to guide the local currency versus an undisclosed trading basket.

The government unveiled an expansionary budget last month, reducing the need for the MAS to loosen policy again even as economic growth probably stalled in the first quarter. The central bank is likely to reserve its firepower for global risks including a possible UK exit from the European Union and a further slowdown in China, according to Macquarie Bank Ltd.

http://www.bloomberg.com/news/articl...r-brexit-china


Click here to view the whole thread at www.sammyboy.com.