It adjusts its policy via three levers: the slope, mid-point and width of the policy band.
“We firmly believe that policymakers were much more concerned about near-term price pressures last year. We see concerns shifting to the medium-term, hence the return to slope steepening,” said analysts at the Bank of America.
Six analysts expect no change to monetary policy at all, citing the weak economic outlook.
“Although inflation stayed above the official forecasts, domestic supply prices have slowed amidst falling import prices. Business expectations, the composite leading index and non-oil domestic exports have all turned negative,” said analysts at DBS.
“Given that Singapore is a price taker in the global economy, keeping the status quo on the SGD NEER policy is consistent with the trend of major central banks moving from dovish hikes towards hawkish pauses,” they added.