Sin­ga­pore re­ces­sion risk raises chance of pol­icy eas­ing

The Sun (Malaysia) - - SUNBIZ -

SIN­GA­PORE: The grow­ing risk of a re­ces­sion in Sin­ga­pore has raised the prospects of an off-cy­cle eas­ing in pol­icy, al­though for now the consensus among econ­o­mists is for the cen­tral bank to sit tight in the hope the econ­omy sparks to life.

Ten out of 15 econ­o­mists polled by Reuters said their base pre­dic­tion was for mon­e­tary pol­icy to re­main un­changed at the next re­view in April, 2017, sim­i­lar to the no-change stance seen at last week’s meet­ing.

How­ever, after the city state’s econ­omy con­tracted sharply in the third quar­ter, with its ser­vices sec­tor in re­ces­sion and man­u­fac­tur­ers hit by weak global de­mand, many an­a­lysts are hedg­ing their bets. Four ex­pect the Mon­e­tary Au­thor­ity of Sin­ga­pore to pro­vide more stim­u­lus, while one saw a 50-50% pos­si­bil­ity. Of the 10 in the “no change” camp, four said the chances of fur­ther stim­u­lus were ris­ing. – Reuters

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