Thursday, October 1, 2015

SGD: Re-centring of policy band required in forthcoming MAS meet – ANZ

FXStreet (Delhi) - Khoon Goh, Research Analyst at ANZ Research, suggests that a re-centring of the policy band towards the prevailing S$NEER level is needed to take pressure off domestic interest rates.

Key Quotes

“Weak domestic growth, low inflation and downside growth risks point to scope for the Monetary Authority of Singapore (MAS) to ease policy in their upcoming October review.

“Even if the MAS leaves policy unchanged, we doubt this will lead to a meaningful rally in SGD, as the market will look for a chance of an intra-meeting move.”

“We maintain our year-end USD/SGD target of 1.45. Should the MAS deliver a re-centring as we expect, there is a chance that USD/SGD could reach 1.45 by the end of October.”
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