SGD: Test of lower bound looms - ANZ

Research Team at ANZ sees the S$NEER testing the lower bound at some stage and expects that a re-centring of the policy band in 2017 is likely.

Key Quotes

“Low growth and subdued core inflation mean MAS policy is set to remain in a neutral stance for some time.”

“With monetary policy between Singapore and the US diverging, this will lead to further SGD depreciation. We forecast USD/SGD to end 2017 at 1.500.”