SINGAPORE (Reuters) – Singapore’s economy will stay on its recovery path in the third quarter but the global spread of the Delta coronavirus variant has clouded the outlook and will likely prompt the central bank to stay on hold, a Reuters poll showed.

FILE PHOTO: A ship docks at Keppel terminal in Singapore November 17, 2020. REUTERS/Edgar Su

Eleven of 13 economists forecast the Monetary Authority of Singapore will make no changes to its policy settings on Oct. 14. Two expect the MAS to tighten slightly and begin normalising its policy, in line with other central banks.

Another poll showed analysts forecast the economy continuing to expand albeit at a more modest pace in the third-quarter.

Preliminary data, also to be released on Thursday, may show the economy grew 6.6% on year, according to the median of 16 forecasts, versus 14.7% in the prior quarter on milder low base effects and stricter curbs after a rise in COVID-19 cases.

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