Emerging Asia Economics Update
High inflation in Singapore will not bring more MAS tightening
The Monetary Authority of Singapore (MAS) revised up its 2011 inflation forecast last week while data out today show that inflation rose in June. Nonetheless, talk of runaway price pressures looks overdone to us. In addition, external risks have increased. The upshot is that we maintain our forecast that the MAS’s tightening cycle is over.
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