Forex Flash: Don't count on Singapore counter-cyclical policy - Nomura

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FXstreet.com (Barcelona) - Singapore's Q2 GDP was below expectations (-0.7% q-o-q saar; Consensus: +0.5%). In terms of monetary policy, Nomura senior economist Euben Paracuelles, continues to see "a 55% likelihood that the Monetary Authority of Singapore ( MAS ) will maintain its policy in October instead of moving to a more neutral stance" he said.

Euben adds: "The weakening in industrial production is still consistent with the MAS's 2012 growth forecast of 1.5-2.5%, with H1 growth at 1.7%. In addition, the drop in CPI inflation to 4% in July was likely within MAS expectations and its full-year forecast of 4-4.5% implies it expects inflation at 4% or lower."

The Nomura economist believes "the MAS will only be prompted to move if it sees signs that inflation and growth are falling more than it currently expects."



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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