Singapore’s central bank decisions don’t usually generate much excitement, but economists are split on whether more easing may be on tap after a surprise move earlier this year.
“It’s definitely a closer call than it has been in a while,” Daniel Martin, an economist at Capital Economics, said Friday.
“Consumer price inflation is extremely low. I don’t see much reason for them not to loosen,” he said. “On the other side, they already loosened in January. They may see it as already enough.” Martin expects policy easing as wage inflation, one of the Monetary Authority of Singapore’s (MAS) key concerns, fell sharply in the fourth quarter. The decision is due Tuesday.