23.09.201404:42:00UTC+00Mas's Bias Will be to Support Recovery in Exports

Quotes from Barclays Capital:

-The recent trend of benign (if not weak) headline inflation in Singapore but firmer core inflation is likely to persist for the remainder of the year.

-We continue to expect ongoing weakness in demand-side pressures stemming from the cooling property market to help offset the impact of elevated unit labour costs and higher food prices on the back of higher distribution costs from Malaysia (fuel and toll price rises).

-With the recovery in exports remaining sluggish meanwhile, we continue to think that the MAS's bias will be to support the recovery in exports, and we expect the SGD NEER to retrace back towards the middle of the band or slightly below - closer to what we see as its fair value.