India, Jan. 28 -- Singapore central bank is set to ease policy further in the coming quarter, Capital Economics' economist Shivaan Tandon said. Last week, the Monetary Authority of Singapore decided to reduce slightly the slope of the S$NEER policy band. There will be no change to the width of the policy band or the level at which it is centred, the bank said.
The economist noted that the key reason why policymakers were comfortable with a slower pace of currency appreciation is that inflation has declined considerably.
With global commodity prices likely to fall in the coming quarters and nominal wage growth cooling, Tandon said price pressures in Singapore will remain contained.
In addition, the weakness of economic growth signals that...