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OCBC expects MAS to keep SGD S$NEER policy unchanged
OCBC expects MAS to balance a June core CPI rebound to 1.6% year-on-year with concerns that imported inflation could still support the S$NEER.
OCBC economists Sim Moh Siong and Christopher Wong expect the Monetary Authority of Singapore to keep its Singapore Dollar S$NEER policy unchanged at the upcoming meeting, even as core consumer price inflation rebounded to 1.6% year-on-year in June. They argue the latest inflation reading does not yet point to a broad or persistent inflation impulse, which they say could limit any immediate SGD reaction to the policy decision.
Still, they note that MAS may emphasize imported inflation risks, a factor that could help keep the S$NEER firm, even with a balanced hold rather than an adjustment.
FXStreet also frames the call as one likely to produce a muted reaction unless the central bank signals stronger concern about imported price pressures.