OCBC sees MAS steepened slope of SGD NEER policy by 50 bps
The 100 basis points slope would allow strengthening of SGD NEER.
The Monetary Authority of Singapore (MAS) steepened the slope of Singapore dollar nominal effective exchange rate (SGD NEER) policy band by 50 basis points (bps) per annum, increasing from neutral to +1.00% per annum, financial services firm, OCBC, said.
In addition, OCBC said MAS can be considered an early mover after putting in place slope steepening moves in October 2021 and January 2022.
The banking firm also noted that the 100 bps slope steepening would allow strengthening of SGD NEER.
In their estimate, a +2.00% per annum slope will see the US dollar-SGD around the 1.3300 vicinity by the fourth quarter of 2022.