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28 Jan 2015
Singapore Central Bank joins the currency wars – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that with its first unscheduled announcement in 13 years, MAS cut its 2015 headline CPI forecasts to the -0.5% to +0.5% band, sending USD/SGD above 1.35 levels.
Key Quotes
“Singapore Central Bank joined the currency wars of the emerging world with an intermeeting policy easing of its own. In the first unscheduled announcement in 13 years, MAS cut 2015 headline CPI forecasts to -0.5% to +0.5% from 0.5-1.5% prior and core inflation 0.5-1.5% from 2.0-3.0% prior, while also lowering the slope of SGD policy band.”
“MAS noted measured adjustment was consistent with the unfolding inflation trends and was appropriate for mid-term price stability, but also maintained 2015 GDP forecast at 2-4%.”
“USD/SGD spiked up over 150pips above $1.35 - the lowest SGD levels since Aug 2010, simultaneously breaking the downtrend going back to early 2002.”
Key Quotes
“Singapore Central Bank joined the currency wars of the emerging world with an intermeeting policy easing of its own. In the first unscheduled announcement in 13 years, MAS cut 2015 headline CPI forecasts to -0.5% to +0.5% from 0.5-1.5% prior and core inflation 0.5-1.5% from 2.0-3.0% prior, while also lowering the slope of SGD policy band.”
“MAS noted measured adjustment was consistent with the unfolding inflation trends and was appropriate for mid-term price stability, but also maintained 2015 GDP forecast at 2-4%.”
“USD/SGD spiked up over 150pips above $1.35 - the lowest SGD levels since Aug 2010, simultaneously breaking the downtrend going back to early 2002.”