SINGAPORE: For the second time this year and in line with market expectations, the Monetary Authority of Singapore ( MAS ) maintained its exchange rate-based monetary policy unchanged on Friday( Oct 13 ).
The Singapore central bank stated in its half-yearly monetary policy statement that it would” maintain the prevailing rate of appreciation” of its Singapore dollar nominal effective exchange rate ( S$ NEER ) policy band.
The length of the policy group and the stage at which it is focused remain unchanged.
All 15 experts surveyed by Reuters had predicted that MAS would delay changing its policy during this scheduled evaluation.
MAS predicted that Singapore’s economic growth would gradually increase over the course of 2024, but it foresaw a weaker-than-anticipated treatment given the uncertain state of the world economy.
Core prices, a crucial indicator of consumer value for MAS, has slowed and is anticipated to significantly decrease over the course of the following year.
” In light of this, it is determined that the current appreciating path of the S$ NEER policy band is sufficiently tight. To prevent imported inflation and reduce regional cost pressures, which will ensure medium-term price stability, a prolonged appreciation of the policy band is required, according to the statement.
MAS stated that it will keep a close eye on both domestic and international economic advances.
MAS manages monetary policy by allowing the local dollar to rise or fall against the currencies of its primary trading partners within an undisclosed band, known as the Singapore dollar nominal effective exchange rate ( S$ NEER ), in contrast to the majority of central banks that do so through the interest rate.
By altering the hill, midpoint, and length of the policy band, it modifies its policy.