By Ronnie Harui
SINGAPORE–The Monetary Authority of Singapore left its monetary policy unchanged for a third straight review on Monday.
The central bank said it will maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate policy band, as the current monetary policy settings remain appropriate.
The sustained appreciation of the policy band will continue to dampen imported inflation and curb domestic cost pressures, thereby ensuring medium-term price stability, the MAS said.
All 15 economists and analysts surveyed by The Wall Street Journal had expected the MAS to keep its policy unchanged.
There will be no change to the width and the level at which the policy band is centered, the central bank said. The MAS kept its policy on hold at its meetings in April and October of last year. It has shifted to quarterly meetings from this year.
The MAS’s monetary policy is centered on Singapore’s exchange rate, which it considers an effective tool for maintaining price stability in the small and open economy.
Write to Ronnie Harui at [email protected]
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