Singapore maintaining weak appreciation policy

The Monetary Authority of Singapore is likely to maintain its current weak S$NEER appreciation policy at its next scheduled meeting in October. 

Inflationary pressures are largely absent, but the MAS remains concerned about the build-up of wage cost pressures from a tight labor market and possible passthrough to consumer prices. 

Inflation will also likely tick higher from 4Q and into 2016 as favorable base effects from lower oil and budget measures dissipate. Growth will have to show a more significant slowdown for the MAS to ease in October, says Bank of America