The Monetary Authority of Singapore (MAS) is expected to keep its current policy parameters unchanged for the year as Singapore’s robust economic growth and global inflation risk reduce the need for any policy adjustments, says Gan and Raveenthar from RHB.
As Singapore’s core inflation cooled to 2.5% and headline inflation remained unchanged at 2.4% y-o-y in July, analysts have revised their inflation forecasts for the year.
RHB Bank Singapore analysts Barnabas Gan and Laalitha Raveenthar have downgraded their headline inflation forecast to 2.6% from 3.5% y-o-y; Maybank Securities Chua Hak Bin and Brian Lee maintained their forecasts for both core and headline inflation at 2.8% and 2.6% respectively; and UOB Group’s Alvin Liew keeps his core inflation forecast at 3.0%.
