Singapore central bank seen on hold (meeting Friday) - but moving closer to tightening
The Monetary Authority of Singapore will issue its semi-annual monetary policy statement tomorrow - Friday October 13
Earlier this month I posted PIMCO says Monetary Authority of Singapore may surprise financial markets this month
- The latest Bloomberg survey has 22 of 23 surveyed economists predicting the MAS the will keep its policy stance unchanged:
- MAS uses the exchange rate rather than interest rates as its main tool
- Will seek no appreciation in the currency against its a trading basket
- More than half of the economists in the survey expect that forward-looking language used in the previous two policy statements -- that the neutral stance is appropriate for an "extended period of time" -- will be dropped.
- Eight predict some tightening at the next meeting in April.
- "The market is toying with the idea that the MAS may move," said Adam McCabe, head of Asian fixed income in Singapore at Aberdeen Standard Investments. "At this point in time, there is no aggressive reason to tighten, even inflation is not a problem."