SGD: MAS Preview, No change but market under-prices easing risk - ANZ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    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.”
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