Economists not ruling out further tightening by MAS in April despite surprise off-cycle move
Add BT as a preferred source
AFTER a surprise off-cycle policy tightening on Tuesday (Jan 25), the Monetary Authority of Singapore (MAS) could still make further moves in April, say economists - not least as it has also raised its inflation estimates for 2022.
Most economists had expected some form of tightening after Monday's news that December's core inflation had reached a 7-year high. What they did not expect was that the central bank would swing to action the very next day.
An hour before the market opened, MAS made a "pre-emptive adjustment" to slightly steepen the Singapore dollar nominal exchange rate (S$NEER) band, allowing faster appreciation to contain inflationary pressures. A strong Singapore dollar (SGD) makes imports cheaper, and dampens demand for exports by making them more expensive.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
MAS convenes bank CEOs over AI cyberthreats; boards told to own risks, not leave to IT teams
Is it time to scrap COE categories for cars?
