The Monetary Authority of Singapore announce their decision at 0000GMT
A Bloomberg survey shows a split expectations, with 6 of 12 economists expecting the MAS to remain on hold, the other half expecting an policy easing
A preview of the decision from UBS expects:
- Monetary Authority of Singapore (MAS) on hold this month
- Expects further easing later this year (UBS nominate October as most likely)
- Say the MAS is trying to manage credit cycle moderation and real growth is underway, and not to reverse it. Policy response should remain gradual in the near term
A Bloomberg preview says:
- USD/SGD could see an intraday trading range of about 200 pips should Singapore's central bank widen or re-center SGD NEER trading band tomorrow
- Either move could be seen as modest easing of monetary policy
- Previous easings in January 2015 and October 2011 triggered intraday ranges of between 183 and 206 pips
- Should MAS hold policy, intraday range could be less than 90 pips, based on reactions to unchanged policy decisions between October 2012 and October 2014
- Singapore 1Q GDP will be released at the same time; seen at 1.7% y/y, down from 2.1% in 4Q, according to survey
Note:
- The Monetary Authority of Singapore uses the exchange rate, instead of interest rates, as its primary monetary policy instrument
- Its sets a Singapore dollar nominal effective exchange rate (NEER) policy band, with slope, width and mid-point. the slope allows the SGD to appreciate or depreciate over time
