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.
“You wouldn’t want to dispense with your already limited policy options,” said Nizam Idris, head of foreign-exchange and fixed-income strategy at Macquarie Bank in Singapore. “There’s a risk that the MAS could move in October.”
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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.
“You wouldn’t want to dispense with your already limited policy options,” said Nizam Idris, head of foreign-exchange and fixed-income strategy at Macquarie Bank in Singapore. “There’s a risk that the MAS could move in October.”
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