, Singapore
150 views
Photo from MAS

Disinflation trends may prompt MAS slope cut 

UOB experts said MAS may cut monetary policy slope by 50 bps.

Experts believe that a normalisation of the monetary policy via a slight slope reduction could occur in July.

UOB Senior Economist Alvin Liew said the  Monetary Authority of Singapore (MAS)  may reduce the slope of the monetary policy by 50 bps on the back of “a continued transmission of imported disinflation into Singapore’s core inflation, anchored by the restraining effect from a gradual appreciation of the S$NEER on the prevailing slope settings, in addition to a softening domestic cost pressures.”

Liew underscored that the April monetary policy statement (MPS) of the central bank “imply greater confidence in the disinflation process.” 

Liew said the MPS also acknowledged that the uptick in core inflation in Jan-Feb of 3.4% YoY from 4Q23  was “lower than expected” and that inflation for food and travel-related services slowed and was “more modest than anticipated”. 

“MAS assessed that underlying inflation should moderate further as ‘imported and domestic cost pressures continue to abate’ whilst the increase in unit labour costs (ULC) will be at a ‘significantly slower pace compared to the preceding two years’,” Liew said,

Meanwhile, Maybank experts Chua Hak Bin and Brian Lee Shun Rong believe MAS will ease policy only in October “at the earliest,” via a gentler S$NEER slope.  

READ MORE: MAS policy holds steady for medium-term price stability

Follow the links for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

ION Orchard marks 15 years as a premier retail destination
The mall is proactive in conducting surveys to identify trends and optimise its tenant mix.
Retail
ION Orchard leads charge in sustainable takeaway practices
 Shoppers will enjoy discounts when they opt for a reusable mug or food container from Muuse.