• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

Singapore’s low inflation not enough for a January easing, analysts say

by December 20, 2024
written by December 20, 2024

By Bing Hong Lok

SINGAPORE (Reuters) – Slowing inflation has created room for Singapore’s central bank to ease monetary policy in January but it may wait until later in 2025 so it can assess incoming U.S. President Donald Trump’s policies, analysts said ahead of key data next week.

A Reuters poll found that November inflation data on Monday, which could be the last inflation read before the Monetary Authority of Singapore reviews policy next month, is expected to show the core rate steady at October’s three-year low of 2.1%.

The MAS has forecast core inflation would be around 2% in the fourth quarter.

Analysts at DBS Bank expect core inflation to hold steady at 2.1% in November and average 1.8% in 2025, but said the MAS was unlikely to ease policy at its January review.

“Chances are the MAS will want to mirror the U.S. Federal Reserve in basing its monetary policy decisions on U.S. President-elect Donald Trump’s actual policies rather than speculating on potential changes before his inauguration,” DBS economist Chua Han Teng said.

Instead of using interest rates, Singapore manages monetary policy by letting the local dollar rise or fall against currencies of its main trading partners within an undisclosed band, known as the Singapore dollar nominal effective exchange rate, or S$NEER.

It can adjust policy via three levers: the slope, mid-point and width of the policy band.

A MAS survey of economists released last week found that even as inflation has moderated, the number expecting a January easing via a reduction in the slope of the S$NEER dropped to about one-third from half in the previous survey.

Eugene Tan at Moody’s (NYSE:MCO) Analytics expects the MAS to wait for core inflation to be below 2% for a few months before easing, and noted a later move would also give the central bank time to see the impact of Trump’s trade policies.

One of those expecting the MAS to reduce the slope of the S$NEER at the January review is Maybank economist Chua Hak Bin, who expects inflation to soon drop below 2% and sees growth moderating to 2.6% in 2025 from 3.6% in 2024. “Disruptions to global trade flows, and a diversion of China’s excess capacity to the rest of the world because of Trump’s tariffs will be a deflationary shock and reduce import prices for Singapore.”

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
US House Speaker Mike Johnson’s future hangs in balance as he scrambles for funding deal
next post
Private equity faces an exit problem in Europe as bigger deals beckon

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • ESPN, Fox to bundle upcoming streaming services for $39.99 a month

      August 12, 2025
    • What Trump’s Nvidia and AMD China deal means for the world

      August 12, 2025
    • A top Federal Reserve official says bleak jobs data backs the case for 3 rate cuts

      August 11, 2025
    • Bed Bath & Beyond relaunches with first store in Nashville, plans dozens more

      August 9, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (595)
    • Stock (6,426)

    Latest News

    • ESPN, Fox to bundle upcoming streaming services for $39.99 a month
    • What Trump’s Nvidia and AMD China deal means for the world

    Popular News

    • US dollar rally pauses before jobs data, Aussie droops on RBA outlook
    • US stock futures rise after upbeat Tesla earnings

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy