SGD: MAS Preview, No Change but Market Under-Prices Easing Risk - ANZ
Khoon Goh, Senior FX Strategist at ANZ Research, expects MAS to maintain their current policy settings at the April review.
Key Quotes
•
“Despite downside risks to growth and inflation, we do not see
conditions as sufficient to warrant a shift to a neutral policy at this
time.
• However, further easing later in the year cannot be ruled out. The market is under-pricing this risk, in our view.
•
With the S$NEER trading above the midpoint, we see scope for the SGD to
weaken. The MPS is unlikely to have a hawkish tone, and our economists
expect the advanced Q1 GDP estimate to show a contraction on a
sequential annualised basis, which should weigh on the currency.”
(Market News Provided by FXstreet)
