MAS expected to retain policy stance
Despite slight rise in headline inflation.
Singapore headline inflation inched up to 2.0% y/y in August from 1.9% y/y in July, exactly in line with expectations (2.0% y/y), according to BBVA, with accommodation costs (4.2% y/y), service (2.7% y/y) and food price (2.4% y/y) leading the pickup.
"With core inflation (excluding accommodation and private road transport costs) also low at just 1.8% y/y, we expect the Monetary Authority of Singapore to leave its policy stance unchanged at its 6-monthly meeting in October," said BBVA.