SINGAPORE: The Monetary Authority of Singapore (MAS) kept its monetary policy unchanged on Friday (Jul 26), in line with expectations.
This is the fifth time in a row that the central bank has held policy steady. MAS started releasing quarterly monetary policy statements this year. Before the change, it typically issued statements twice a year, in April and October.
In Friday's monetary policy statement, MAS said it would maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. There will also be no change to the band's width and the level at which it is centred.
Reuters had polled 10 analysts, and nine expected MAS to leave policy unchanged.
Singapore's monetary policy is based on exchange rates, rather than interest rates like in other countries. MAS lets the Singapore dollar rise or fall against the currencies of the country's main trading partners within the S$NEER band, which is not publicly disclosed.
It can change the slope, mid-point and width of the band when adjusting policy.
MAS last tightened policy in October 2022, when it re-centred the mid-point of its band.
Continue reading...
This is the fifth time in a row that the central bank has held policy steady. MAS started releasing quarterly monetary policy statements this year. Before the change, it typically issued statements twice a year, in April and October.
In Friday's monetary policy statement, MAS said it would maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. There will also be no change to the band's width and the level at which it is centred.
Reuters had polled 10 analysts, and nine expected MAS to leave policy unchanged.
Singapore's monetary policy is based on exchange rates, rather than interest rates like in other countries. MAS lets the Singapore dollar rise or fall against the currencies of the country's main trading partners within the S$NEER band, which is not publicly disclosed.
It can change the slope, mid-point and width of the band when adjusting policy.
MAS last tightened policy in October 2022, when it re-centred the mid-point of its band.
Continue reading...