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31 Mar 2014
Singapore: MAS FX policy preview - Nomura
FXStreet (Bali) - Nomura Economists assign around a 70% probability to the Monetary Authority of Singapore (MAS) maintaining its current FX
policy stance at its April policy announcement.
Key Quotes
"This is based on our view of stable growth in 2014, inflation rising in the coming months, and continued support for the government's drive to raise productivity."
"On FX, with S$NEER around the middle of the policy band, we see some value in being long S$NEER at this juncture based on the macroeconomic outlook as well as our view that the main driver of the move lower in the S$NEER (primarily IDR strength) may be waning."
"On rates, we maintain our medium-term bear flattening bias in Singapore rates. We continue to recommend SGD 3s5s IRS flatteners."
"The sharp fall in February's inflation is attributable to temporary effects as acknowledged by the MAS. As such, we still expect inflation to rise amidst tighter labour markets and food and services inflation."
policy stance at its April policy announcement.
Key Quotes
"This is based on our view of stable growth in 2014, inflation rising in the coming months, and continued support for the government's drive to raise productivity."
"On FX, with S$NEER around the middle of the policy band, we see some value in being long S$NEER at this juncture based on the macroeconomic outlook as well as our view that the main driver of the move lower in the S$NEER (primarily IDR strength) may be waning."
"On rates, we maintain our medium-term bear flattening bias in Singapore rates. We continue to recommend SGD 3s5s IRS flatteners."
"The sharp fall in February's inflation is attributable to temporary effects as acknowledged by the MAS. As such, we still expect inflation to rise amidst tighter labour markets and food and services inflation."