Monetary Authority of Singapore will slightly increase the slope of the $ NEER policy band
- slope was previously at zero%, to be slightly raised says the MAS
- MAs says that the ap[the $ NEER policy abandonment appraisal trajectory to ensure price stability at medium end]while recognizing the risks for economic enterprise[appreciationpathforthe$NEERpolicybandwillensurepricestabilityoverthemedium-termwhilerecognizingtheriskstotheeconomicrecovery[latrajectoired’appréciationdelabandedepolitique$NEERassureralastabilitédesprixàmoyentermetoutenreconnaissantlesrisquespourlarepriseéconomique[appreciationpathforthe$NEERpolicybandwillensurepricestabilityoverthemedium-termwhilerecognisingtheriskstotheeconomicrecovery
- the width of the policy band remains unchanged
- the focal point of the policy strip remains unchanged
In the preview I posted yesterday, I took a quick look at how the MAS implements monetary policy. The Bank does not do this through interest rates but through the SGD exchange rate.