The Monetary Authority of Singapore (MAS) will announce its monetary policy decision on 14 April. The consensus view appears to be divided on what it will do with the Singapore dollar nominal effective exchange rate (SGD NEER) policy band. It is expected to recentre it to the current level. “We estimate the slope at 1% per annum and the width at +/-2% from the centre of the band. Our model estimates the SGD NEER at around 1.12% below the middle of the band currently”, Says Standard CharteredRecentring the NEER will give the MAS flexibility, considering that the NEER has mostly hovered around the bottom of the band for the past three months. The MAS lowered the SGD NEER slope in an unexpected inter-meeting move on 28 January. Growth momentum also appears sluggish.
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