MAS tightened policy on Monday, citing renewed Middle East tensions and higher
energy prices that could revive inflationary pressures. Using the exchange rate
rather than interest rates, MAS very slightly steepened the upward slope of the
Singapore dollar nominal effective exchange rate (NEER) policy band while
keeping the band width and center unchanged. MAS said external price pressures
are expected to persist and transmit more broadly to domestic CPI for some time.
In a poll of 18 analysts, 4 expected a slope increase, 1 expected a re-centering
of the band, and 13 expected no change.
