As in an orderly linear sell down?
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Sep 15, 2008
</TR><!-- headline one : start --><TR>MAS: S'pore markets orderly <!--10 min-->
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->SINGAPORE'S central bank said on Monday the city-state?s money and financial markets were still functioning in an orderly fashion after the collapse of Lehman Brothers.
The banking community has also been discussing and preparing for the orderly settlement of outstanding positions with Lehman, the Monetary Authority of Singapore (MAS) said.
'MAS remains in close contact with the banks, SGX and relevant financial institutions to monitor developments and to see to the orderly function of the markets,' the central bank said in an emailed statement.
Global financial markets were shaken on Monday after Lehman Brothers filed for bankruptcy protection and Merrill Lynch agreed to be taken over as a deepening credit crisis took new victims.
Earlier, Citigroup said MAS will probably ease monetary policy in October to support the country's slowing economy, which may slump into a technical recession in the third quarter.
Citi economist Kit Wei Zheng said the Monetary Authority of Singapore will probably slow the rise of the Singapore dollar by switching to a 'zero appreciation' bias, and reducing the slope of the policy band in which the currency is allowed to rise.
The central bank sets monetary policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, not by adjusting interest rates.
It tightened policy at its last two meetings to tame inflation, which hit a 26-year high of 7.5 per cent before cooling in July.
Under that opaque system, the currency is still allowed to appreciate at a gradual pace against the trade-weighted basket, although no one is sure at what pace.
'The backdrop of an extended period of below potential growth is essentially disinflationary, and sets the stage for an easing of monetary policy,' Mr Kit said in a note to clients.
He said there was a 40 per cent chance Singapore may fall into a technical recession in the third quarter.
Like others around the world, Singapore's trade-dependent economy is slowing as the global credit crisis takes a toll on consumer demand, especially in the key US and European export markets.
Mr Kit said non-oil domestic exports, which were worth about three quarters of Singapore's economy in 2007, could fall 'well into early 2009', citing the OECD Composite Leading Indicator.
He said it appeared unlikely for now the central bank will change the centre of the band in which the currency trades - usually regarded by economists as the most aggressive move - but the move cannot be ruled out if exports, factory output and inflation disappoint in August.
The government said last month Singapore's economy will grow at the lower end of its 4-5 per cent forecast, much lower than the strong expansion of 7.9 per cent in 2007. -- REUTERS <!-- end of for each --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Mon, 15 Sep 2008 22:14:31:341---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Sep 15, 2008
</TR><!-- headline one : start --><TR>MAS: S'pore markets orderly <!--10 min-->
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"-->SINGAPORE'S central bank said on Monday the city-state?s money and financial markets were still functioning in an orderly fashion after the collapse of Lehman Brothers.
The banking community has also been discussing and preparing for the orderly settlement of outstanding positions with Lehman, the Monetary Authority of Singapore (MAS) said.
'MAS remains in close contact with the banks, SGX and relevant financial institutions to monitor developments and to see to the orderly function of the markets,' the central bank said in an emailed statement.
Global financial markets were shaken on Monday after Lehman Brothers filed for bankruptcy protection and Merrill Lynch agreed to be taken over as a deepening credit crisis took new victims.
Earlier, Citigroup said MAS will probably ease monetary policy in October to support the country's slowing economy, which may slump into a technical recession in the third quarter.
Citi economist Kit Wei Zheng said the Monetary Authority of Singapore will probably slow the rise of the Singapore dollar by switching to a 'zero appreciation' bias, and reducing the slope of the policy band in which the currency is allowed to rise.
The central bank sets monetary policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, not by adjusting interest rates.
It tightened policy at its last two meetings to tame inflation, which hit a 26-year high of 7.5 per cent before cooling in July.
Under that opaque system, the currency is still allowed to appreciate at a gradual pace against the trade-weighted basket, although no one is sure at what pace.
'The backdrop of an extended period of below potential growth is essentially disinflationary, and sets the stage for an easing of monetary policy,' Mr Kit said in a note to clients.
He said there was a 40 per cent chance Singapore may fall into a technical recession in the third quarter.
Like others around the world, Singapore's trade-dependent economy is slowing as the global credit crisis takes a toll on consumer demand, especially in the key US and European export markets.
Mr Kit said non-oil domestic exports, which were worth about three quarters of Singapore's economy in 2007, could fall 'well into early 2009', citing the OECD Composite Leading Indicator.
He said it appeared unlikely for now the central bank will change the centre of the band in which the currency trades - usually regarded by economists as the most aggressive move - but the move cannot be ruled out if exports, factory output and inflation disappoint in August.
The government said last month Singapore's economy will grow at the lower end of its 4-5 per cent forecast, much lower than the strong expansion of 7.9 per cent in 2007. -- REUTERS <!-- end of for each --><!-- vbbintegration : start --><!-- vbbintegration : end --><!-- dennis change request 20070424 : start --><!---Google ad - Start : Mon, 15 Sep 2008 22:14:31:341---><!-- AdSpace STI Google ad tag --><SCRIPT language=JavaScript1.1 src="http://ads.asia1.com.sg/js.ng/site=tsti&pagepos=20&size=10X10"> </SCRIPT>
