MAS likely to ease monetary policy: Poll
Singapore's central bank is expected to ease monetary policy at its semi-annual meeting next month in a bid to boost a trade-reliant economy being choked by the prolonged US-China trade war, economists said.
Eleven economists polledlate last week all expect the Monetary Authority of Singapore (MAS) to loosen policy at a meeting due to take place no later than Oct 14.
Last week, Singapore reported disappointing manufacturing production figures for August as electronics output plunged, the latest in a slew of weak data.
"The much worse-than-expected August industrial production outturn increases the conviction in our view that the MAS will ease foreign exchange policy," Nomura said in a note to clients.
One of the world's busiest ports, Singapore has been hit hard by the escalating Sino-US trade dispute, which has disrupted global supply chains.
Earlier this month, economists sharply cut their forecasts for Singapore's growth this year, citing trade tensions and China's slowdown as the top risks to the financial hub.
Analysts also expect expansionary measures on the fiscal side, especially as elections are due to be held within months. - REUTERS