MAS tipped to wait for 2022 to normalise monetary policy
But currency policy could tighten in Oct if inflation overshoots projections in the months ahead and growth is stronger than expected, watchers suggest
Singapore
THE Monetary Authority of Singapore (MAS) will probably wait until next year to normalise its currency settings, economists have told The Business Times - although they have not ruled out a tightening in October.
The consensus is for the central bank to retain its neutral Singapore dollar nominal effective exchange rate (S$NEER) stance at this month's half-yearly policy meeting, even as core inflation inched into positive territory in February after a year underwater.
Such a decision would leave the policy band of the S$NEER at a flat or "zero" slope of appreciation, with the mid-point of the band at the slightly lower level set in end-March last year.
Still, watchers are weighing when the economy will have recovered enough to support S$NEER apprec…
A NEWSLETTER FOR YOU
SGSME
Get updates on Singapore's SME community, along with profiles, news and tips.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Economy & Policy
Global wave of consultancy layoffs has not hit Singapore
Daily Debrief: What Happened Today (Apr 19)
An economy transformed: Lee Hsien Loong’s 20 years as Singapore’s Prime Minister
Daily Debrief: What Happened Today (Apr 18)
Singapore’s first RoboCluster launched for facilities management, to turn R&D into market solutions
Daily Debrief: What Happened Today (Apr 17)