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MAS’ and other central bank moves are massively overrated

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    • As at Jun 27, the ST Index was about 9 per cent higher than it was before MAS started tightening in October 2021.
    • As at Jun 27, the ST Index was about 9 per cent higher than it was before MAS started tightening in October 2021. PHOTO: SHINTARO TAY, ST

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Ken Fisher

    Published Sun, Jul 2, 2023 · 05:40 PM

    EUROZONE and UK interest rate hikes continue, the latter with a surprise 50 basis points in June. Meanwhile, US Federal Reserve chair Jerome Powell has hinted at more hikes ahead.

    All this is stoking speculation over what is ahead for the Monetary Authority of Singapore’s (MAS) exchange-rate machinations.

    Yet, whether tightening pauses, speeds up or lingers, central bank actions mean little. Their talk, even less. Here is why.

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