SINGAPORE (Sept 30): Singapore's central bank is likely to further ease monetary policy at its scheduled October meeting to either a neutral policy stance or zero appreciation, Credit Suisse says.

The Monetary Authority of Singapore has long maintained a steady appreciation bias for the Singapore dollar nominal effective exchange rate, which it manages against a basket of currencies.

"We expect the NEER to fall towards the bottom of its policy bands on confirmation of a dovish central bank shift. The weak domestic and global growth environment will likely encourage expectations for further MAS easing," Credit Suisse says.

The Swiss investment bank is downgrading its forecasts for the Singapore dollar, saying it would continue to weaken further against the US dollar from $1.455 to US dollar in three months and $1.495 to US dollar in 12 months.