Economists expect no change in S$ policy

[SINGAPORE] Inflation may have eased sharply since Singapore's last monetary policy statement in October, but the firm market consensus is that the central bank will keep the Singapore dollar appreciating for another six months when it reviews its policy in a week's time, to guard against wages-led price hikes later this year.

If so, this would be the fourth review in a row at which the Monetary Authority of Singapore (MAS) has kept its stance unchanged, following a series of adjustments after the global financial crisis.

But since its current position allows for a "modest and gradual" appreciation of the Singapore dollar relative to a basket of major trading partners' currencies, no change should not be equated with inaction, economists noted.