GDP Beats, MAS Unchanged

The MAS leave policy settings unchanged, maintaining a zero percent per annum rate of appreciation, the width and the centre of the band are unchanged.

• GDP came in well above estimates at 0.2% Y/Y compared to estimates for a 0.5% decline. In the accompanying statement the MAS said that the economy will grow at an above trend pace, and it saw the pace of GDP growth topping the upper end of the 4%-6% range, it noted that core inflation should rise gradually predicting 0%-1% in 2021.
• "The Singapore economy will grow at an above-trend pace this year, but the sectors worst hit by the crisis will continue to face significant demand shortfalls. As the negative output gap narrows, core inflation should rise gradually from its current subdued levels but remain below its historical average," MAS says in statement.
• USD/SGD breaks lower following the statement and GDP data, last down 20 pips at 1.3393, the pair arresting its decline, for now, just above strong support at 1.3391, a 38.2% retracement level that has held since early March. Longer term bears look to the 50-day moving average at 1.3370.

Link to full statement here: