Singapore Dollar: MAS seen very slightly tightening – Standard Chartered

Standard Chartered’s Edward Lee expects the Monetary Authority of Singapore (MAS) to deliver another very slight tightening in October, raising the SGD NEER slope to 1.5% from 1.25% while keeping the band parameters unchanged. Lee highlights broader inflation, upside risks to prices, firm growth and the likelihood that more of the H1-2025 pre-emptive easing will be unwound.

MAS poised for incremental tightening

"We expect the Monetary Authority of Singapore (MAS) to again “very slightly” increase the SGD NEER slope in October to 1.5% from 1.25% currently, while keeping the centre and width of the policy bands unchanged."

"We estimate that move at 25bps and expect another increment of the same size in October, consistent with a calibrated response to elevated uncertainty."

"This may be a close call, with a pause as the main risk."

"Furthermore, we think another 25bps of the H1-2025 pre-emptive easing is yet to be unwound."

"Inflation makes a strong case for continuing to tighten."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)