Latest news with #Monetary Authority of Singapore
Yahoo
3 days ago
- Business
- Yahoo
Singapore Set to Hold Policy as Economy Shows Tariff Resilience
(Bloomberg) -- Singapore's central bank will likely leave its monetary policy unchanged for the first time this year, adopting a wait-and-see approach as policymakers gauge looming US tariffs that risk weighing on growth. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy Fourteen of 19 economists in a Bloomberg survey forecast the Monetary Authority of Singapore, which uses the exchange rate rather than interest rates to stabilize prices, will maintain its settings on Wednesday. Five, including Goldman Sachs Group Inc. and Bank of America, expect easing to continue. The MAS loosened policy in January for the first time in five years, and again in April as the case to support the economy became stronger, following US President Donald Trump's tariff threats and the ensuing global market ructions. Singapore's policy review comes ahead of the US Federal Reserve on July 31, with Chair Jerome Powell under increasing pressure from Trump to cut interest rates. The Fed is widely expected to hold steady, as it awaits clarity on the inflation impact from Trump's tariffs, amid a wave of global cuts from Canada to the UK and Australia. Forecasters expecting a hold cite Singapore's economic stability, with preliminary growth estimates this month showing the city-state dodged a technical recession — defined as two consecutive quarters of contraction. The faster-than-expected growth was led by manufacturing, services export and construction. Chua Hak Bin, economist at Maybank Securities Pte Ltd. sees the MAS leaving its settings unchanged through the rest of the year, 'in view of the resilient economic outlook and benign, but stabilizing core inflation.' By contrast, Kai Wei Ang, Asean economist for Bank of America NA, is predicting an easing though he reckons the decision will be a 'close call.' Ang compared the current situation with April 2016, when the economy was producing close to its potential and yet the MAS eased because core inflation was forecast to average below 2%. Like in 2016, the economy's negative output gap has narrowed but the outlook for core inflation appears to be 'more benign,' Ang said. At the same time, Singapore's real effective exchange rate is 'elevated,' he said, suggesting the central bank will 'instill its preemptive stance by flattening the slope in July, rather than wait till October.' To meet its mandate of 'medium-term price stability,' the MAS intervenes in the foreign exchange market to manage its currency within a range. It describes that process publicly, but only in general terms without providing specific figures or targets. The main components of that policy are guiding the 'slope' of the dollar's appreciation, the 'center' of that slope and the 'width' of the trading band it targets. The five analysts predicting an easing on Wednesday, for instance, expect the MAS to slightly reduce the slope of its policy band for its main Singapore dollar measure - the nominal effective exchange rate, known as S$NEER. The MAS also doesn't have an explicit inflation target, though it has previously said that a core inflation rate of just under 2% on average 'is consistent with overall price stability in the economy.' The gauge stood at 0.6% in June. Earlier this month, MAS Managing Director Chia Der Jiun said core inflation should remain subdued with a resurgence of underlying price pressures unlikely, while noting that policymakers are alert to risks on both sides. One major uncertainty is the impact of US tariffs, not only on Singapore's economy but global growth as well. Singapore was hit with a proposed 10% rate, lower than its Southeast Asian neighbors. But with trade equaling about three times its GDP, it remains exposed to any sustained slowdown in global commerce. Seven of nine economists who responded to a question about the impact of US tariffs on Singapore's monetary policy said the MAS was more likely to ease over 2025 and 2026. The same number expect the city-state to end up with a US import levy of 10% or lower, while three expect the rate to rise. The view among many monetary officials around the world is that Trump's attempt to repatriate manufacturing and rewire commerce, if enduring, may be more of a danger to growth rather than posing a threat to consumer prices. As a result, a technical recession is still possible in Singapore as the effect from businesses front-running higher US tariffs fade. 'The global outlook is uncertain,' said Philip Wee of DBS Bank Ltd. 'We will be looking out for hints of a third easing at the October review, given the central bank's base case scenario for global economic activity to slow.' --With assistance from Shinjini Datta. Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of an American Who Helped North Korea's Wild Remote Worker Scheme Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Smart Reads of the Week: STI Surge, MAS Capital Boost, and Long-Term Growth Picks
This week, we take a closer look at the Monetary Authority of Singapore's S$1.1 billion capital injection into small and mid-cap companies, spotlighting five stocks that may benefit. We also assess whether Singapore REITs remain a smart investment, with interest rates staying higher for longer. On the blue-chip front, we examine four Temasek-owned stocks with strong long-term potential, and track the Straits Times Index as it breaks past the 4,200 level. For income investors, we've found five Singapore stocks yielding more than your CPF OA rate. In global markets, we compare two semiconductor powerhouses, TSMC and ASML, to see which may be the better buy. We also highlight four Singapore stocks that have soared over 290% in the last five years and feature four reliable US growth stocks for investors with US$5,000 to deploy. Here are this week's top articles: MAS is Injecting S$1.1 Billion Into Small & Mid-Cap Companies: 5 Singapore Stocks That Could BenefitWith MAS directing capital into local markets, these five small-to-mid-cap stocks may be poised for gains. With Interest Rates Staying Higher for Longer, Are Singapore REITs Still a Smart Investment for 2025?We evaluate the resilience of Singapore REITs amid the prospect of extended high interest rates. 4 Temasek-Owned Singapore Blue-Chip Stocks With Solid Long-Term ProspectsThese blue-chips offer defensive characteristics and growth, backed by one of the world's most respected investors. The Straits Times Index Has Cracked the 4200 Level: Is There Room for Further Gains?STI is making new highs. We assess the outlook for further upside and the sectors leading the charge. 5 Singapore Stocks Yielding More Than Your CPF Ordinary AccountThese dividend stocks offer higher yields than CPF OA, potentially enhancing your long-term passive income. TSMC vs ASML: Which Semiconductor Giant is the Better Buy?Two global tech titans face off. We compare growth potential, margins, and strategic positioning. The Power of Long-Term Investing: 4 Singapore Stocks That Soared 290% or More in the Last 5 YearsThese stocks demonstrate what's possible when patience meets the right companies. Got US$5,000? 4 Reliable US Growth Stocks That Can Deliver Solid Long-Term ReturnsLooking to grow your wealth in the US market? These four stocks may offer strong compounding over time. As the STI hits record highs, long-term investors are asking: can dividends keep up? In this special National Day webinar, we dive into the earnings outlook for Singapore's top dividend stocks and what to expect in the months ahead. Secure your free seat here and stay ahead of the curve. How a simple 5-minute newsletter can shield your portfolio: When markets get noisy, Smart Reads helps you stay clear-headed with a calm, curated update like the week's top investing stories, key market shifts, and practical insights for protecting your portfolio. Sent once a week so you can focus on protecting and growing your investments without stressing over every headline. Click here to sign up for FREE. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! The post Smart Reads of the Week: STI Surge, MAS Capital Boost, and Long-Term Growth Picks appeared first on The Smart Investor.
Bloomberg
15-07-2025
- Business
- Bloomberg
Singapore Central Bank Sees Slower Financial Sector Growth
Singapore will likely see slower growth in its financial sector in coming years as a confluence of trade and geopolitical tension clouds the economic outlook for the trade-dependent country, according to the central bank. While the sector advanced by 6.8% in 2024, more than double the 3.1% growth reported in the previous year, growth is not expected to 'continue at the pace of the last few years,' Chia Der Jiun, managing director of the Monetary Authority of Singapore, said at the central bank's annual briefing on Tuesday.
