Singapore’s deleveraging to last “a lot longer” than expected, warns BofAML
The SGD isn’t as stable as it looks.
Singapore’s economy could be deleveraging for a lot longer than the market expects, a report by Bank of America Merrill Lynch stated.
BofAML warns that the stable, appreciating trajectory of the SGD has led to an unprecedented credit and property boom.
“We worry about instability and imbalances engendered by three currencies that have been on a predictable, stable trajectory–the SGD, the HKD and the RMB. We think Singapore could deleverage a lot longer than the consensus expects,” the report noted.