MAS stands pat with neutral monetary policy stance
The logo of the Monetary Authority of Singapore (MAS) is pictured at its building in Singapore in this February 21, 2013 file photo. REUTERS/Edgar Su/File Photo
SINGAPORE: The Monetary Authority of Singapore (MAS) on Friday (Oct 13) kept its exchange rate-based monetary policy unchanged at its semi-annual review, in line with expectations.In its statement, the central bank said its neutral policy stance of zero per cent appreciation of the S$NEER (Singapore dollar nominal effective exchange rate) would be “appropriate for an extended period”.
Given the economic outlook at this stage and consistent with medium-term price stability, MAS will maintain the rate of appreciation of the S$NEER policy band at zero percent. The width of the policy band and the level at which it is centred will be unchanged, it added.
Last April, the central bank unexpectedly flattened the slope of the band it uses to guide the local currency against an undisclosed trading basket, reducing the rate of appreciation to zero per cent. The MAS maintained this stance for the past two meetings, while reiterating the need to maintain its neutral stance for an “extended period”.
Prior to Friday’s policy meeting, a majority of economists had expected MAS to stay the course on its monetary policy stance but there were some who thought the central bank could tweak its dovish "extended period" forward guidance.