MAS’ and other central bank moves are massively overrated

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.