They were encouraged by Finance Minister Heng Swee Keat’s statement that the budget position for 2018 will remain expansionary.
According to Bloomberg, Singapore’s government may have given the central bank a green light to charge ahead with monetary policy tightening this year.
Economists are more confident in their calls that the Monetary Authority of Singapore will exit its neutral stance as soon as the next scheduled decision in April. They’re encouraged after Finance Minister Heng Swee Keat said Monday that the budget position for 2018 will “remain expansionary” as Singapore incurs a small deficit amid greater spending and delayed tax increases.
The central bank stuck to a neutral stance in its previous October decision, whilst giving itself room to tighten policy if necessary. The MAS, which uses the exchange rate as its main tool, eased three times between January 2015 and April 2016.
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