Singapore Monetary Policy


Singapore: MAS makes fourth consecutive decision to keep monetary policy unchanged

October 14, 2013

At its second semi-annual policy meeting on 14 October, the Monetary Authority of Singapore (MAS) decided to maintain its commitment to currency appreciation by keeping unchanged the slope, the center and the width of the Singapore dollar nominal effective exchange rate (S$NEER), a policy first implemented in April 2012. The decision was in line with market expectations.

According to the MAS, the country's economy is expected to "grow modestly" in both 2013 and 2014 amid stronger external-oriented sectors. Regarding price developments, policymakers explained that domestic inflationary pressures have increased due to a pick-up in the accumulated cost pass-through. In addition, recoveries in Certificate of Entitlement (COE) premiums, as well as higher labor costs, were acknowledged as key inflationary sources. On the other hand, imported price pressures were less of a concern. The MAS is expected to maintain, "its policy of a modest and gradual appreciation of the S$NEER policy band, in order to accommodate temporary fluctuations."

FocusEconomics Consensus Forecast panelists expect the exchange rate to reach 1.21 SGD per USD by the end of this year. By the end of 2014, the panel sees the exchange rate at 1.20 SGD per USD.

Author:, Senior Economist

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Singapore Monetary Policy Chart

Singapore Exchange Rate October 2013

Note: Daily spot exchange rate of Singapore dollar (SGD) against U.S. dollar (USD).
Source: Source: Thomson Reuters.

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