These risks could derail the 'Goldilocks economy' in 2018

SINGAPORE (Dec 22): DBS Group Research is positive on both developed and emerging economies for the year ahead despite the anticipated tightening of central bank liquidity.

The research house is forecasting for Singapore’s policy interest rates to hit 2.15% by the end of 4Q18 based on a three-month swap offer rate (SOR), with the city state’s exchange rates to rise by 0.01 point to 1.40 by the end of 3Q18, before going back down to 2Q’s projected 1.39 level in 4Q18.

In a Friday note, chief economist Taimur Baig says he sees ample electronics orders in the pipeline; a healthy inventory dynamic; long dormant indicators such as freight rates coming back to life; and early indications of a capex cycle.

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