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'Tighter' financial conditions to weigh on Singapore's lending market: MAS

Risks include high inflation, geopolitical tensions, and spillovers from China's economic situation and global real estate market strains.

Tighter global financial conditions were seen as a major factor potentially impacting Singapore's financial and lending markets, the MAS Survey of Professional Forecasters revealed.

The report also showed that elevated inflation rates, escalating geopolitical tensions, and spillovers from China's economic activities and global real estate market stresses have been identified as significant risks.

It also noted factors that could positively influence domestic financial markets and lending conditions such as less restrictive global financial conditions, marked by rate cuts from major central banks and spillover effects from a robust Chinese economy.

Moreover, top concerns for the domestic outlook include spillovers from external growth slowdown and geopolitical tensions, with the former ranked as the primary risk. Respondents also highlighted inflationary pressures and repercussions from China's weakened growth.

ALSO READ: Tighter budget seen in SG to address inflation pressures

The survey also revealed potential upside risks, particularly from better-than-expected external growth, faster tech cycle recovery, and stronger growth in China. Among these, the tech cycle recovery is seen as the most promising upside risk.

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