SGD: MAS tightening path supports currency – Standard Chartered

Standard Chartered’s Edward Lee and Jonathan Koh expect the Monetary Authority of Singapore to steepen the SGD NEER slope by 50bps in April, partially reversing pre-emptive easing from H1-2025 while keeping the band unchanged. They highlight higher Oil prices, increased inflation forecasts, and Singapore’s safe-haven status, and prefer to fade dips in SGD NEER around 1.0–1.5% above the policy mid-point.

MAS stance underpins Singapore Dollar

"We expect the Monetary Authority of Singapore (MAS) to steepen the SGD NEER slope by 50bps in April to +1.0% per annum, while keeping the centre and the +/-2% policy band unchanged."

"Reflecting higher oil prices, we raise both our core and headline inflation forecasts for 2026 to 2.5% from 1.5% previously."

"On balance, we expect the MAS to first partially remove 2025’s pre-emptive easing and then assess the evolving Middle East situation."

"We maintain our constructive outlook on the SGD versus regional peers."

"As a result, we prefer to fade dips in SGD NEER at c.1.0-1.5% above the mid-point of the policy band."

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