Stock Groups

Singapore central bank tightens policy in surprise move By Reuters


© Reuters. FILE PHOTO – This file photo of February 21st 2013, shows the logo of Monetary Authority of Singapore (MAS). REUTERS/Edgar Su/File Photo

SINGAPORE (Reuters – Singapore’s central banks unexpectedly tightened their monetary policy, saying that it will maintain price stability for the long-term.

Monetary Authority of Singapore, (MAS), manages monetary policies through exchange rate setting, not interest rates. This allows the Singapore Dollar to rise and fall relative to the currencies of its major trading partners in an unspecified band.

It uses three levers to adjust its policy, the slope, the mid-point and the width of the policy range, also known as the Nominal Exchange Rate or S$NEER.

The MAS stated that it will slightly increase the slope of S$NEER’s policy band from zero percent. It stated that the width and level of the policy band will remain the same.

Reuters polled 13 economists and found that eleven predicted the MAS would maintain its current policy, while two expected a slight tightening.

Disclaimer Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses that you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.



Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.