Singapore: Further tightening could push rates lower

Macquarie Research believes MAS is unlikely to tighten monetary policy again in October.

“Note that tightening in April pushed negative real interest rates lower and, given the softening US growth outlook, nominal rates are likely to remain low for much of 2011. As such, further “tightening” could exacerbate any existing asset bubbles,” said Macquarie Research.

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