Singapore’s budget, Trump auto tariffs, BoK to cut

Singapore’s budget for the upcoming fiscal year contained a number of giveaways designed to boost support for the government ahead of elections, which must be held by November. In terms of the macroeconomic impact, the overall budget surplus is projected to be unchanged at 0.9% of GDP. With the slowing economy unlikely to get any support from fiscal policy, the onus will be on the Monetary Authority of Singapore to support demand.

Meanwhile, Korea is the country in Asia most vulnerable to US tariffs on imports of automobiles. However, there are reasons to think the economic impact may not be that significant. Finally, the Bank of Korea is likely to resume its monetary easing cycle by cutting the policy rate by 25bps at its scheduled meeting on Tuesday.