>Global Financial Events (October 10 - October 16, 2011)

China: In China, we expect CPI inflation to remain elevated in September, while exports growth is likely to show moderation. On the central bank policy front, we expect the Bank of Korea and Bank Indonesia to stay on hold and the Monetary Authority of Singapore to shift to a neutral SGD stance. In the US, retail sales would be key to watch for the latest trends in consumer spending.

India: We expect industrial production (IP) growth to remain weak at 4.5% yoy in August on the back of the poor performance of various activity indicators like the Infrastructure Index, the PMI etc.

Korea: We do not expect the Bank of Korea to raise the policy rate in the October Monetary Policy Committee meeting, given the elevated financial stress in Europe.

Singapore: We now think that an even greater reduction of the slope to a 0% appreciation

stance is the most likely scenario, in light of the increased downside risks to growth and given where the SGD NEER is currently trading.

To read full report: GLOBAL FINANCIAL EVENTS