MAS tightens monetary policy

This is to ensure price stability over the medium term. 

The Monetary Association of Singapore (MAS) tightened monetary policy following their October meeting.

MAS slightly raised the slope of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) policy band. Previously, this stood at zero percent. The width of the policy band and level at which it is centered, however, will not be changed. 

This was done to secure price stability over the medium term while paying attention to the risks surrounding economic recovery.

The department also believes that the country’s economic growth is to remain above trend in the next quarters, barring any economic setbacks. A normalized output is expected by 2022. 

MAS expects core inflation to rise from its current average of below 1% this year to 1% to 2% in 2022.