9 Apr 2015
SGD in focus ahead of MAS meeting - ANZ
FXStreet (Guatemala) - Khoon Goh, analyst at ANZ Bank explained that they have an out of consensus call for next week’s MAS policy meeting, where we expect a recentring of the policy band lower.
Key Quotes:
"There is inflation headroom for MAS to accommodate a weaker S$NEER, in our view. In addition, we see a need for policy easing in order to offset tighter financial conditions, partly stemming from the rise in SIBOR. Re-centring will also reduce the need for FX intervention."
"While a re-centring would see the SGD weaken, we do not expect the S$NEER to push to the new lower bound in the near-term."
"Q1 GDP data, to be released at the same time as the policy decision, is expected to show signs of moderation, with our economist forecasting 0.2%q/q saar and 1.8%y/y (from 4.9%q/q saar and 2.2%y/y in Q4 2014)."
Key Quotes:
"There is inflation headroom for MAS to accommodate a weaker S$NEER, in our view. In addition, we see a need for policy easing in order to offset tighter financial conditions, partly stemming from the rise in SIBOR. Re-centring will also reduce the need for FX intervention."
"While a re-centring would see the SGD weaken, we do not expect the S$NEER to push to the new lower bound in the near-term."
"Q1 GDP data, to be released at the same time as the policy decision, is expected to show signs of moderation, with our economist forecasting 0.2%q/q saar and 1.8%y/y (from 4.9%q/q saar and 2.2%y/y in Q4 2014)."