Monetary Authority of Singapore maintains the width, centre and slope of the SGD NEER policy band, as expected
Says:
- Current monetary policy settings remain appropriate.
- Prevailing rate of appreciation of the policy band will keep a restraining effect on imported inflation.
- Growth momentum in the Singapore economy should improve in the second half of 2024.
- GDP growth is likely to come in closer to its potential rate of 2–3% for the full year.
- Growth in the domestic-oriented sectors is projected to normalize to pre-pandemic rates.
- Core inflation should step down more discernibly in Q4.
- Core inflation should fall further to around 2% in 2025.
Reaction details (01:06)
- Muted reaction seen in USD/SGD.
Analysis details (01:02)
- As a reminder, the MAS utilises the exchange rate as its main policy tool in which it could tweak policy through either the mid-point, slope or width of the currency band.
26 Jul 2024 - 01:00- EquitiesData- Source: Newswires
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