The Monetary Authority of Singapore meet on October 14.

Market expectations are for an on hold policy decision. MAS monetary policy is made through adjustments to its exchange rate (varying its rate of appreciation or depreciation) not interest rates.

TD expect the MAS leave policy unchanged this week.

  • TD note the risk their view is skewed to easing, which would mean a shift in the mid-point of the SGD band. TD note SG$ looks a little high, around 1.2% above the mid-point of estimated policy band.
  • The MAS would prefer the avoid further appreciation of the SGD.