SGD: MAS to be on hold at the October review - ANZ

Irene Cheung, analyst at ANZ, suggests that with external headwinds (notably US-China trade tensions), they are now expecting the MAS to be on hold at the October review.

Key Quotes

“In the event of a further deterioration in the external environment, some unwinding of monetary tightening (put in place in 2018) cannot be ruled out. The downbeat monetary policy outlook will likely see S$NEER trade toward the centre of the policy band.”

“In the process of unwinding the bullish sentiment, we expect SGD to underperform the JPY, range-trade against the CNH and MYR, while still outperforming the AUD, NZD, EUR, GBP and INR.”