MUFG: MAS Stance Supports Singapore Dollar Resilience

Lloyd Chan at MUFG highlights that Singapore's June inflation data remained benign, with modest upticks in both headline and core CPI. The Monetary Authority of Singapore (MAS) is expected to keep its policy unchanged at the July meeting but is likely to retain a tightening bias.

According to Chan, this stance supports the relative resilience of the Singapore dollar. The benign inflation backdrop suggests the MAS can maintain its current policy settings without immediate need for further tightening, which underpins SGD stability against a backdrop of global monetary policy divergence.