Singapore’s Central Bank May Change its Tune

Disappointing data could see Singapore’s central bank change its tune at next year’s monetary policy review, economists say.  Exports in the trade-reliant Southeast Asian city-state missed forecasts in November, data showed Wednesday, with non-oil domestic exports growing 1.6 percent on year, below estimates for a near 4 percent gain.

The data put exports on track for a second consecutive year of contraction, which could pose a serious headwind to 2015 growth, said economists at Australia New Zealand Banking (ANZ). Net exports account for nearly 30 percent of the country’s gross domestic product (GDP).

The report is one of many data prints weighing on Singapore’s tight monetary policy; core inflation fell to an eight-month low in October, while a central bank survey on Wednesday showed significant downside risks to growth. Economists now expect fourth-quarter gross domestic product to rise 2.3 percent on year, compared with earlier estimates of a 3.1 percent.


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