SINGAPORE: The Monetary Authority of Singapore (MAS) kept its exchange rate-based monetary policy unchanged on Wednesday (Jul 30) after easing twice earlier this year.
Since the last monetary policy statement, global economic growth has been more resilient than earlier anticipated, it said.
The monetary policy statement said MAS will maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.
"There will be no change to its width and the level at which it is centred," the central bank said.
It noted the two policy moves earlier this year and said it is in "an appropriate position to respond to risks to medium-term price stability".
Economists polled by Reuters were split on whether MAS would loosen monetary policy or leave it unchanged. Six expect the former and six expect the latter.
The central bank eased monetary policy in January and April this year after keeping it unchanged for nearly five years.
MAS manages monetary policy through the exchange rate instead of interest rates. It lets the Singapore dollar strengthen or weaken against currencies of the country's main trading partners within an undisclosed band.
It can change the slope, mid-point or width of the band.
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Since the last monetary policy statement, global economic growth has been more resilient than earlier anticipated, it said.
The monetary policy statement said MAS will maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.
"There will be no change to its width and the level at which it is centred," the central bank said.
It noted the two policy moves earlier this year and said it is in "an appropriate position to respond to risks to medium-term price stability".
Economists polled by Reuters were split on whether MAS would loosen monetary policy or leave it unchanged. Six expect the former and six expect the latter.
The central bank eased monetary policy in January and April this year after keeping it unchanged for nearly five years.
MAS manages monetary policy through the exchange rate instead of interest rates. It lets the Singapore dollar strengthen or weaken against currencies of the country's main trading partners within an undisclosed band.
It can change the slope, mid-point or width of the band.
Continue reading...