(18 January 2012 – Singapore) Singapore banks’ loan growth has moderated to 10 percent according to a source.According to the source, November loan growth moderated to 10 percent year-on-year, growing 8.8 percent for the year to date, with broad-based declines noted in manufacturing, general commerce, financial services-related loans and building and construction.
Overall, loans to businesses grew by 7.8 percent y/y while housing and bridging loans, remained strong, expanding 16 percent y/y or up 1.5 percent m-m.
System deposits grew by 6.1 percent y/y in November, up from 5.6 percent in October, with deposits from Singapore residents growing at a faster pace (+8 percent y/y) versus non-residents at 2.4 percent.
Headline CPI moderated to 3.6 percent y/y in November, largely on account of the lower increase in transportation inflation and housing cost.
The source revealed that inflation is expected to remain elevated in 2013, led by private transport and accommodation costs with underlying inflation remaining sticky due to tight labour markets and wage pressures.