SINGAPORE- 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 percent for the year.
Annual core inflation came in at 3.1 percent 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 percent 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 percent year-on-year growth in Q1 was slightly above respondents’ forecast of 2.6 percent in the previous survey. This time round, respondents expect the economy in Q1 to grow 2.7 percent 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 percent and 3.5 percent this year.
The central bank left monetary policy settings unchanged at a policy review in April. The next policy review is due in July.
