Singapore Non-Oil Exports Beat Expectations, Japan's Finance MinisterSuzuki Comments on FX Interventions and BOJ Independence

Singapore's non-oil exports increased by 2.3% month-over-month, beating expectations of a 0.5% increase and rebounding from a revised -2.8% decrease in October. The figure, which is a key indicator of demand for Singapore's exports, was driven by increases in exports of electronics and non-electronic commodities. However, on a year-over-year basis, exports declined by 13.6%. Commenting on the data, Singapore's Ministry of Trade and Industry said that the growth outlook for Singapore's exports for the remainder of 2023 is still uncertain, amid persistent global uncertainties and ongoing inflationary pressures.

In other news, Japan's Finance Minister Suzuki declined to comment on the potential for further FX interventions to influence the yen's decline, saying that speaking out may lead to a self-fulfilling prophecy. Suzuki emphasized that it is important to respect the independence of the Bank of Japan in conducting monetary policy, including the timing of ending negative interest rates. He added that the BOJ should make decisions based on future economic projections, even if it means acting differently from other central banks.

Suzuki further stated that he was closely monitoring currency movements with urgency and that it was important to take steps to improve the sustainability of government spending. The comments came after the yen fell to a fresh pandemic low of 130.58 per dollar earlier this week, prompting speculation about the potential for further FX interventions from the Bank of Japan.

In response to whether Japan would abandon negative rates, Suzuki said, "Various opinions are being voiced in financial markets about the fate of negative rates. But it is important to make decisions on monetary policy based on realistic assessments of economic trends and price movements, and to communicate those decisions clearly."

The comments came ahead of the Bank of Japan's upcoming policy meeting on January 18, where markets will be watching closely for any adjustments to its yield curve control policy.

In conclusion, Singapore's modest rebound in non-oil exports is a positive sign for Singapore's economy, but ongoing global uncertainties and inflationary pressures continue to weigh on the outlook. Meanwhile, Japan's Finance Minister Suzuki emphasized the importance of respecting the BOJ's independence in conducting monetary policy and monitoring currency movements closely. These developments highlight the ongoing challenges and considerations faced by central banks and governments in maintaining economic stability and growth.