Singapore’s economy remained strong in Q2, with GDP growth of 5.7% y/y driven by a manufacturing boom linked to AI-related demand. However, with inflation staying low, we expect the Monetary Authority of Singapore to leave policy unchanged at its upcoming meeting later this month. Meanwhile, although the Bank of Korea’s rate hike this week was widely expected, its communications were more hawkish than anticipated. We have therefore pencilled in further tightening and now expect the policy rate to reach 3.25% by year-end (from 2.75% currently).
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