But prospect of falling prices could prompt MAS to let Singdollar weaken –
Published on Jan 13, 2015 6:11 AM
By Melissa Tan
Singapore will be a big winner from cheaper oil although the central bank may have to let the currency weaken if inflation sinks too low, analysts said yesterday.
Oxford Economics said in a recent report that the economy here would likely grow at a slightly faster pace while the trade balance would improve significantly if crude oil falls to US$40 (S$53) a barrel.
The Philippines and Taiwan would also be likely beneficiaries of such a drop, it added.
The British-based group forecast that Singapore’s gross domestic product (GDP) would grow around 3.7 per cent this year and next year if oil prices drop to US$40 a barrel.