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Where to invest if MAS eases monetary policy in October

Assets like bonds and gold will be a safe haven for investors.

An expert from StashAway said there is a possibility that the Monetary Authority of Singapore (MAS) will ease its policy in October 2023 if Singapore posted slow growth and "if core inflation comes down with it."

According to Stephanie Leung, chief investment officer at StashAway, bonds, and gold will be the way to go if a meaningful slowdown hits Singapore’s economic growth.

“Differing economic cycles between developed and emerging economies suggest the latter could provide an increasingly attractive diversification opportunity,” Leung added.

Leung made the comments following the MAS’ decision to pause the tightening of monetary policy in its April 2023 meeting.

“The MAS’ latest decision to pause monetary policy tightening underscores the extra level of caution needed given the highly uncertain macroeconomic environment,” said Leung. 

Amidst global macroeconomic headwinds, Leung advised investors to create a long-term strategy built on a diversified portfolio of bonds and equities.

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