Chart of the Day: Money supply growth moderates to 7.8%

It was undermined by a softer gain in net foreign position.

Singapore's money supply, including Asian currency units, rose 7.8% YoY in April, decelerating from a 10.1% bounce the month before, as this chart from RHB shows.

The moderation in growth was driven by a slower gain in net foreign position. Meanwhile, public demand for credit picked up sharply, cushioning some of the downside.

According to RHB, money supply growth is expected to stay resilient at 5.6% in 2017, albeit expanding at a more moderate pace than 8.1% in 2016.

"Despite the moderation in growth, liquidity conditions remain conducive to economic growth. Furthermore, the strong pick-up in business services and financial services loans point to healthy economic activity," it noted.