Reuters with the (huge) news out of Singapore's central bank:
- will re-centre mid-point of SG$NEER policy band up to prevailing level
- says no change to slope, width of band
Citing:
- says appropriate to further tighten monetary policy stance to tackle price pressures
More:
- MAS core inflation now projected to be between 3.0–4.0% for 2022, up from earlier forecast of 2.5–3.5%
- CPI-all items inflation for 2022 expected to come in at 5.0–6.0%, higher than earlier forecast range of 4.5–5.5%
- MAS core inflation projected to rise slightly above 4% in near term, before easing towards end of the year
----
The Monetary Authority of Singapore conduct monetary policy via changes via its SGD exchange rate mechanism. Not through changes to interest rates.
The MAS meet twice a year only, in April and October. Thus this is an out of cycle move, after an unscheduled meeting, and why I said its huge news. A surprise tightening from the Monetary Authority of Singapore.
