Singapore Dollar: MAS seen very slightly tightening – Standard Chartered
Standard Chartered’s Edward Lee expects the Monetary Authority of Singapore (MAS) to deliver another very slight tightening in October, raising the SGD NEER slope to 1.5% from 1.25% while keeping the band parameters unchanged.
Standard Chartered forecasts the Monetary Authority of Singapore (MAS) to make a minor rate hike in October, boosting the SGD NEER slope to 1.5% from 1.25%, while maintaining the band parameters as they are. This expected increase is attributed to broader inflation, upside risks to prices, robust economic growth, and the expectation that more of the H1-2025 pre-emptive easing will be unwound.
The Monetary Authority of Singapore (MAS) is anticipated to "very slightly" raise the SGD NEER slope to 1.5% from the current 1.25% in October, with the policy band's center and width remaining unchanged. The forecast suggests a 25 basis points (bps) increment, with another similar hike also expected in October, aligning with a measured response to heightened uncertainty.
While a potential pause remains as the primary risk, there is a belief that an additional 25bps of the pre-emptive easing from the first half of 2025 has yet to be unwound. The report highlights how inflation presents compelling arguments for sustaining the rate tightening trend.
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