Headline inflation in Singapore for November remained steady and stood at  -0.8% year on year. For last thirteen months, the gauge is in negative territory. Similarly, the core inflation surprisingly reduced to 0.2% y/y from 0.3% in October.

The core inflation is expected to be bottomed out and will move up next year. Therefore, the Monetary Authority of Singapore is likely to take a decision carefully.

"We think that the MAS will look through the softness in headline and core inflation. For now, we maintain our 2015 and 2016 forecasts for headline inflation of -0.5% and 1.2% respectively. ... The token easing was in line with our view of no material deterioration in the outlook for growth and inflation. The MAS remains firmly focused on the key medium-term inflation driver - the tight labour market. Unless there is a systemic shock, we expect no change policy in the April 2016 MPS", states Barclays in a research note on Wednesday.