SINGAPORE ECONOMY ·
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MAS tipped to wait for 2022 to normalise monetary policy

But currency policy could tighten in Oct if inflation overshoots projections in the months ahead and growth is stronger than expected, watchers suggest

Singapore

THE Monetary Authority of Singapore (MAS) will probably wait until next year to normalise its currency settings, economists have told The Business Times - although they have not ruled out a tightening in October.

The consensus is for the central bank to retain its neutral Singapore dollar nominal effective exchange rate (S$NEER) stance at this month's half-yearly policy meeting, even as core inflation inched into positive territory in February after a year underwater.

Such a decision would leave the policy band of the S$NEER at a flat or "zero" slope of appreciation, with the mid-point of the band at the slightly lower level set in end-March last year.

Still, watchers are weighing when...

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