Singapore: MAS likely to stay on hold - TDS

Mitul Kotecha, senior emerging markets strategist at TD Securities, suggests that they are expecting the MAS to stay on hold at its policy meeting on Friday 12 April, maintaining its modest and gradual appreciation stance, with no change in the slope and the width of the band.

Key Quotes

“SGD has been trading near the top end of its NEER band persistently over recent months, which raises some risks that the MAS may opt to re-centre the band though we think this is unlikely.”

“At the October 2019 meeting the MAS “slightly” increased the slope of the SGD NEER band, its second consecutive tightening. While the October MAS statement kept open the possibility of further tightening, weaker domestic activity data, slowing trade, softer wage growth and a drop in inflation, with core CPI falling to 1.5% y/y in February, point to status quo.”