Quotes from Barclays Capital:
-We think the divergence between core and headline will continue into 2015. We expect the cooling property market and lower electricity tariffs to offset higher labour costs and prices of food imported from Malaysia.
-Against this backdrop, the SGD NEER has fallen further from the upper bound of the trading band in recent months, briefly breaking through our estimated midpoint of the band on 19 November for the first time since March, and since breaking through on three additional days.
-We continue expect the SGD NEER to retrace below the midpoint of the band in the months ahead, closer to what we see as its fair value.
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