SINGAPORE: The Monetary Authority of Singapore (MAS) kept its exchange rate-based monetary policy unchanged on Friday (Apr 12), in line with analysts’ expectations.
This is the fourth time in a row that the central bank has held policy steady.
In its monetary policy statement, MAS said it would maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, and no changes would be made to its width and the level at which it is centred.
“MAS will closely monitor global and domestic economic developments, and remain vigilant to risks to inflation and growth,” the statement said.
All 11 analysts polled by Reuters expected MAS to keep monetary policy unchanged at this meeting.
Instead of using interest rates like other central banks, MAS manages monetary policy by letting the Singapore dollar strengthen or weaken against the currencies of the country’s main trading partners within the undisclosed S$NEER band.
To adjust policy, it changes the slope, mid-point and width of the band.
The central bank has left monetary policy unchanged since October 2022 when MAS re-centered the mid-point of its band.
