Monetary Authority of Singapore to recentre its SGD trading band

Reuters with the (huge) news out of Singapore's central bank:

• will re-centre mid-point of SG$NEER policy band up to prevailing level
• says no change to slope, width of band

Citing:

• says appropriate to further tighten monetary policy stance to tackle price pressures

More:

• MAS core inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term now projected to be between 3.0–4.0% for 2022, up from earlier forecast of 2.5–3.5%
• CPI-all items inflation for 2022 expected to come in at 5.0–6.0%, higher than earlier forecast range of 4.5–5.5%
• MAS core inflation projected to rise slightly above 4% in near term, before easing towards end of the year

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The Monetary Authority of Singapore conduct monetary policy via changes via its SGD exchange rate mechanism. Not through changes to interest rates.

The MAS meet twice a year only, in April and October. Thus this is an out of cycle move, after an unscheduled meeting, and why I said its huge news. A surprise tightening from the Monetary Authority of Singapore.