Given a disappointing 2Q advance GDP print and bleak expectations for 2H, it is likely the Monetary Authority of Singapore will ease policy at its October meeting, says JPMorgan analyst Matt Hildebrandt. MAS should flatten the slope of the Singapore dollar exchange rate band, and possibly widen the band, but will only shift the midpoint if there is a sharp shock to the economy, he writes. But MAS will keep appreciation bias, just with a more gradual slope. After advance 2Q GDP contracted 1.1% on-quarter Friday, the house lowered its 2H GDP growth forecast to 2.2% from 2.8% previously.
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