MAS policy easing likelier than ever this October
August exports dive propels chances of a central bank intervention, says BBVA.
All eyes are now on the Monetary Authority of SIngapore (MAS) after the country's exports fell by -10.6% y/y (consensus: -4.0% y/y) in August, primarily due to a sharp decline in demand from Europe (-28.7% y/y), its largest export market.
Along with recent domestic weaknesses (last week Singapore reported that retail sales contracted by -2.7% y/y in July), this most recent outturn increases the likelihood that the Monetary Authority of Singapore will ease policy at its semi-annual meeting in mid-October, says BBVA.