Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
Oil Prices Surge Toward Biggest Monthly Gains in Years Amid Middle East Tensions 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Canada’s Trade Deficit Jumps in November as Exports Slide and Firms Diversify Away From U.S. 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
U.S. Eases Venezuela Oil Sanctions to Boost American Investment After Maduro Ouster 
U.S. Prosecutors Investigate Fed Chair Jerome Powell Over Headquarters Renovation 
The Monetary Authority of Singapore (MAS) is expected to slightly reduce the slope (i.e. the annual rate of appreciation) of its S$NEER policy band to 0.5 percent from current 1.0 percent, when holing its second semi-annual policy meeting in mid-October, according to the latest research report from Scotiabank.
Singapore’s newspaper The Straits Times reported on Sunday that the city-state could downgrade its current 2019 economic growth forecast of 1.5-2.5 percent in August, citing the Ministry of Trade and Industry (MTI).
It could be attributed to a global economic slowdown. Earlier on July 16, the IMF said it has trimmed its 2019 economic growth estimate for Singapore to 2.0 percent from the May prediction of 2.3 percent, following its discussions with Singapore officials that concluded on May 14, the report added.
The Singaporean economy unexpectedly contracted 3.4 percent q/q in the second quarter, with non-oil domestic exports tumbling 17.3 percent y/y in June. In addition, South Korea’s exports fell 13.6 percent in the first 20 days of July from a year earlier, while Taiwan’s export orders dropped 4.5 percent y/y in June. Both have casted a shadow on global trade outlook in the coming months.
Meanwhile, MAS core inflation will likely remain in a range of 1-2 percent the rest of the year. The June core inflation due Tuesday could ease a bit further from 1.3 percent y/y the previous month.
"In our view, the S$NEER index will likely head for the centreline of the S$NEER policy band going forward. In the meantime, an annual appreciation of 0.5 percent in the S$NEER would be able to ensure Singapore’s medium-term price stability particularly if major central banks decide to expand their balance sheets once again," Scotiabank further commented in the report.
