Economists expect MAS to tighten monetary policy again in October, though some see room for a pause

[SINGAPORE] The Monetary Authority of Singapore (MAS) is widely expected to tighten monetary policy for a third consecutive time at its upcoming policy meeting, though some economists say it could hold instead.

Several economists expect MAS to steepen the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band “very slightly” when it announces its decision on Wednesday (Oct 14).

UOB, Barclays and Bank of America (BOA) each expect a 25-basis-point increase, which would lift the slope to 1.5 per cent per annum from an estimated 1.25 per cent. Maybank and DBS also expect a slight steepening.