Economists split on whether MAS tightening in October will be single or ‘double-barrelled’ move

ECONOMISTS are split on the extent of policy tightening at the Monetary Authority of Singapore’s (MAS) next decision in October, but agree that it is likely to coincide with flash estimates of third quarter economic growth, rather than preceding those figures.

The MAS has made several early or off-cycle moves in recent years. But the policy review traditionally takes place at the same time as the flash release of Singapore’s gross domestic product (GDP) growth estimates, and there is currently no strong justification to split the two up, private-sector economists told The Business Times (BT).

For one thing, any inter-meeting moves – such as the ones in January and July this year – have not been so close to the scheduled meeting dates, noted OCBC chief economist Selena Ling. The next MAS meeting is due no later than Oct 14.