Singapore money supply grows 8.1% in December

It picked up from a 7.7% rise the month before.

Singapore broad money supply including Asian currency units surged 8.1% in December, accelerating from 7.7% climb the month before.

RHB said the demand for liquidity from the private segment increased 5.5% YoY, picking up from +4.3% the month before, in constrast to the slowing of public demand for credit and net foreign position to 2.2% and 1.1%, respectively.

"Going forward, the overall economic outlook is still challenging for the island, with export growth to remain patchy and borrowing costs to rise. However, with exports expected to improve slightly, and in light of the SGD’s attractiveness as a safe haven currency, we raise our forecast for M3 growth +5.6% in 2017, from +3.3% previously, and compared to +8.1% in 2016," RHB noted.