Rising Odds of Singapore Easing May See Yields Go Up, Not Down
- GDP unexpectedly shrunk last quarter, exports tumbled in June
- MAS may make unscheduled policy decision, ING’s Sakpal says
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A rapid deterioration in Singapore’s economic data has fueled speculation the central bank will ease monetary policy. The result may be higher interest rates and bond yields.
Bets the Monetary Authority of Singapore will adjust policy have intensified after government reports over the past month showed the economy unexpectedly shrank 3.4% in the second quarter and exports slumped 17.3% in June. The trade-reliant economy has suffered amid escalating tensions between the U.S. and China.