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

[krafty]

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/artic...o-forgo-easing-to-save-tools-for-brexit-china

 

[krafty]

if they dun lower SGD, fewer investors will come and more jobs lost. if they do lower SGD, imports will be more expensive, note that we are dependent on import and not export.

 

[dancingshoes]

just out from oven:

SGD has depreciated after the announcement, weakening by 60bp versus USD and 47bp basis points on the S$NEER (to -0.27% 8:06am SGT from +0.20% at 7:57am SGT). We see some further risk of depreciation in the near-term, but not so much from this mild shift in policy (from +0.5% to 0% annualized appreciation), but from the risk that expectations of further easing this year could increase. As such, we maintain our short S$NEER position given the asymmetry we highlighted previously and as S$NEER is rich within the policy band.

 

[johnny333]

I have a USD account in Spore. That is where I will keep the bulk of my $.

My SG$ account is just for daily expenses when I am in Spore: groceries, bus fare, utility bills,..

 

[krafty]

it seems to me that MAS monetary policy is at the expense of the poor in sinkieland. also be prepared for pricier imported food staples and goods.:(

 

[hbk75]

if they dun lower SGD, fewer investors will come and more jobs lost. if they do lower SGD, imports will be more expensive, note that we are dependent on import and not export.

if they weaken sgd. funds will flow out and sibor up as well. stupid pap mismanaging the economy. getting too many ppl in debts and wanna let sibor go up.

 

[dancingshoes]

if they weaken sgd. funds will flow out and sibor up as well. stupid pap mismanaging the economy. getting too many ppl in debts and wanna let sibor go up.

it's not that bad, other countries like Japan and europe introduce -ve interest rate, some others are cutting interest rate. it's only sooner or later, MAS depreciate SGD. sibor going up is due to US Fed hiking interest rate.

 

[hbk75]

it's not that bad, other countries like Japan and europe introduce -ve interest rate, some others are cutting interest rate. it's only sooner or later, MAS depreciate SGD. sibor going up is due to US Fed hiking interest rate.

sibor can get so low is due to in flow of funds. now sgd weaken will going to spike up sibor. so many sinkies too confidence of their abilities that they have borrowed millions to buy properties.

 

[dancingshoes]

sibor can get so low is due to in flow of funds. now sgd weaken will going to spike up sibor. so many sinkies too confidence of their abilities that they have borrowed millions to buy properties.

i see SG bond yield going up meaning many are selling their bonds. learn from temasek, invest for the long term.:p

 

[hbk75]

i see SG bond yield going up meaning many are selling their bonds. learn from temasek, invest for the long term.:p

many sinkies who have tons of debts will be repenting soon.