“The MAS’s focus will be on the downside growth risks in 2025, especially with potentially more protectionist US trade policy,” said Jennifer Kusuma, a senior rates strategist at ANZ Group Holdings Ltd. With core inflation set to clock in below its long-term average, “there is scope for the MAS to make a pre-emptive move to reduce the restrictiveness of current policy settings.”
Singapore’s currency weakness is likely to endure amid expectations that its central bank pivots to easing and US tariffs ripple through the global economy.
The Singapore dollar is already near a two-year low against the greenback, and options data show trading of bearish wagers is dominating the market in anticipation of the Monetary Authority of Singapore adjusting its stance. A majority of 17 economists in a Bloomberg survey see a shift in stance at the institution’s upcoming decision on Jan. 24. Others see a move only later this year, which would allow more time to see how Donald Trump retaking the US presidency plays out.
