07-10-2013, 10:32 AM
The negative FX impact on Singapore companies will stay...
MAS likely to maintain stance on exchange rate: Economists
SINGAPORE — The Monetary Authority of Singapore (MAS) is likely to leave its exchange-rate stance unchanged, in order to contain inflationary pressures, even as an expected slowdown in third-quarter growth puts pressure on the central bank to ease its policy.
This is the consensus view of economists, who expect the central bank to maintain the “modest and gradual appreciation” stance on the Singapore dollar (SGD) nominal effective exchange rate — at an estimated 2 to 2.5 per cent pace — at its half-year policy meeting this week.
“Some believe that, with below potential growth, the MAS could loosen up monetary-policy stance. After all, inflation from house and car prices has moderated considerably,” said UOB economist Francis Tan.
“However, given that core inflation is still on the radar screen and seems to be trending higher, we believe the MAS will keep to the bias of inflation over growth.”
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http://www.todayonline.com/singapore/mas...economists
MAS likely to maintain stance on exchange rate: Economists
SINGAPORE — The Monetary Authority of Singapore (MAS) is likely to leave its exchange-rate stance unchanged, in order to contain inflationary pressures, even as an expected slowdown in third-quarter growth puts pressure on the central bank to ease its policy.
This is the consensus view of economists, who expect the central bank to maintain the “modest and gradual appreciation” stance on the Singapore dollar (SGD) nominal effective exchange rate — at an estimated 2 to 2.5 per cent pace — at its half-year policy meeting this week.
“Some believe that, with below potential growth, the MAS could loosen up monetary-policy stance. After all, inflation from house and car prices has moderated considerably,” said UOB economist Francis Tan.
“However, given that core inflation is still on the radar screen and seems to be trending higher, we believe the MAS will keep to the bias of inflation over growth.”
...
http://www.todayonline.com/singapore/mas...economists