“We think that broad contours for Budget 2025 were perhaps already factored into MAS’s baseline outlook in January. Our base case remains for MAS to stay on hold in April,” say the economists.
Singapore’s projected fiscal surpluses for FY2024-FY025 is eye-catching and masks an expansionary stance for FY2025, says Bank of America Global Research (BofA). While a small disinflationary impulse for 2025 is likely, BofA’s economists think the inflationary impulse for 2026 will perhaps be dampened with lower childcare fees.
In a Feb 18 note, Merrill Lynch (Singapore) Asean economist Ang Kai Wei and BofA Securities India’s India & Asean economist Rahul Bajoria say there are “little implications” for the Monetary Authority of Singapore’s (MAS) coming policy decision in April.
