MAS keeps Singdollar appreciation rate unchanged but warns of elevated inflation - The Straits Times

The Monetary Authority of Singapore has kept the slope, mid-point and width of its Singdollar Nominal Effective Exchange Rate policy band unchanged. Because Singapore manages monetary policy through the exchange rate rather than interest rates, this decision signals continuity: the existing pace of appreciation is deemed appropriate for now.

That continuity comes with a caution. MAS flagged that inflation is likely to stay elevated, meaning price pressures have not fully eased. For markets, the key takeaway is that the central bank is not yet ready to loosen policy settings, even as growth risks elsewhere draw attention.

What to watch: upcoming inflation readings, global interest rate shifts and any change in the band's parameters at future reviews. The band's slope matters most for the currency's direction, while its width determines how much the Singdollar can move around the mid-point. MAS does not hold a scheduled meeting every quarter, so each policy statement carries added weight for rate-sensitive assets and trade-exposed sectors.