The Monetary Authority of Singapore meeting is April 14.
At its most recent meeting, in October 2022 Singapore's central bank (the Monetary Authority of Singapore) tightened policy.
- for the 4th time in 2022
- for the fifth time since they began to tighten in October 2021
- responding to rising inflation
- MAS re-centred the currency band to prevailing levels
- but kept the slope and the width of the band unchanged
More on that decision is here:
In the policy statement at the time (October 14 2022) the MAS noted:
- Over the last three months, the S$NEER has broadly appreciated and is now close to the top of the policy band.
- The three-month S$ Singapore Interbank Offered Rate (SIBOR) rose to 3.4% from 2.5% in July, while the Singapore Overnight Rate Average (SORA) increased to 3.4% from 2.1%.
Note that one of the MAS's key tools is its exchange rate policy. It manages the SGD exchange rate against a basket of currencies of Singapore's major trading partners. MAS adjusts the policy band as necessary to maintain price stability and support economic growth.
ANZ snippet on what to expect at the upcoming meeting:
- Recent banking stresses won't stop the Monetary Authority of Singapore from a tightening move at their April review.
- We expect an increase in the slope of the S$NEER policy band by 100bps to 3% pa.
- A stronger SGD is needed to rein in inflation.
***
I very much like the title to ANZ's graph there:
- Inflation has peaked but will remain elevated for some time
Yes, and not just for Singapore. That is the case for many, many countries across the globe. Sweden (comment from Riksbank Governor Erik Thedeen) over the weekend for example:
- "It is in our forecasts that inflation will come down quite quickly. The problem is that it has been in our forecasts all through 2022 and it has yet to happen"
