MAS Holds Out On Easing Despite Sharp Downturn In 3Q GDP

Economic Research	17 October 2016
Singapore
Economic Highlights
MAS Holds Out On Easing Despite Sharp Downturn In 3Q GDP At its advance reading, Singapore’s 3Q GDP plunged 4.1% on a q-o-q seasonally-adjusted annualised basis, retreating from a 0.2% gain in the previous quarter. Despite the steep deterioration in economic growth, the Monetary Authority of Singapore (MAS) made no adjustments to the SGD nominal effective exchange rate (S$NEER). We lower our forecast and now expect GDP to grow 1.4% and 1.2% in 2016 and 2017 respectively, from +1.8% and +1.4% earlier. Further, we feel it is warranted for MAS to ease its S$NEERslope at its next meeting in April 2017. Economist:  Ng Kee Chou | +603 92802179
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