Low rates may weigh on Singdollar after MAS policy hold
But some analysts still bullish as MAS’ firm stance and Singapore’s credibility support the move
The Singapore dollar (Singdollar) could potentially regain its status as a regional funding currency following the Monetary Authority of Singapore (MAS) decision to maintain monetary policy settings, according to HSBC analyst Joey Chew. On October 14, MAS revealed that it would keep the nominal effective exchange rate (S$NEER) within its current policy band, surprising market expectations.
This stance was applauded by other analysts, such as Maybank and DBS, with the latter noting that the US dollar-Singdollar pair has remained stable. MAS indicated that the current policy band would enable the S$NEER to continue strengthening and counter anticipated inflationary pressures, while also being well-prepared to address any risks to medium-term price stability.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
