By Xinghui Kok
SINGAPORE (Reuters) – Most economists are expecting Singapore’s monetary policy to remain unchanged at the July and October reviews, according to a survey by the central bank, as they expect core inflation to be sticky at 3% for the year.
Annual core inflation came in at 3.1% in April, matching the rate in March.
The median forecast of 20 economists surveyed by the Monetary Authority of Singapore is for the economy to grow 2.4% this year, unchanged from the previous survey in March.
The survey was conducted in end-May, after the government released first-quarter GDP results that posted the fastest growth in 18 months.
The 2.7% year-on-year growth in Q1 was slightly above respondents’ forecast of 2.6% in the previous survey. This time round, respondents expect the economy in Q1 to grow 2.7% year-on-year.
The trade ministry and MAS said in May it expects the core rate to gradually moderate before a more discernable step down in the fourth quarter. Both core and headline inflation were expected to average between 2.5% and 3.5% this year.
The central bank left monetary policy settings unchanged at a policy review in April. The next policy review is due in July.
(Reporting by Xinghui Kok; Editing by Stephen Coates)
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