MAS likely to slow pace of Singdollar appreciation: analysts

They expect the central bank to reduce the slope of the S$NEER policy band from an estimated +1% to +0.5% per annum

Published Wed, Sep 25, 2019 · 09:50 PM

Singapore

MARKET watchers are expecting the Monetary Authority of Singapore (MAS) to ease its monetary policy stance for its review in mid-October, with the central bank likely to slow down the pace of the Singapore dollar gain against a basket of currencies.

In a research note on Wednesday, OCBC analysts noted: "Our base case scenario is for the MAS to reduce the slope of the S$NEER (Singapore dollar nominal effective exchange rate) policy band from the currently estimated +1 per cent per annum appreciation path, to +0.5 per cent per annum. We expect no change in the width and centre of the policy band."