MAS Expected to Hold SGD Policy Steady with Cautious Inflation Tone
OCBC analysts anticipate no change to Singapore’s exchange-rate policy at the upcoming MAS meeting, noting a modest core CPI rebound to 1.6%.
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OCBC strategists Sim Moh Siong and Christopher Wong expect the Monetary Authority of Singapore (MAS) to leave the SGD Nominal Effective Exchange Rate (S$NEER) policy band unchanged at Monday’s review.
The central bank is likely to maintain a cautious stance despite a modest recovery in core inflation, which rose to 1.6% year-on-year. No shift in the slope, width, or centre of the policy band is foreseen.
Market participants will watch for any tweaks to the inflation outlook or language surrounding growth risks.
Source: FXStreet Forex News