There was a slowdown in net foreign position growth.
The growth of Singapore's money supply (M3) slowed down to 6.9% in August, lower than last month's 8.1% gain.
According to RHB, it was driven by a sharp slowdown in net foreign position growth. This was curbed by the pickup in domestic demand for credit.
The firm expects loan growth to slow down to +4.2% in 2017.
Higher base effects and slower in economic growth in H2 could lessen improvements. Bleak public construction activities could also cause the decline.
Consumer loan demand, however, is likely to rise due to housing loans.
RHB projects the M3 to grow 5.6% in 2017, lower than +8.1% last year.
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