Singapore’s central bankers are expected to signal a potential tightening of monetary policy next year, while holding steady for now, amid rising inflation risks from supply-chain disruptions and surging energy prices.
The Monetary Authority of Singapore, which uses a currency band as its main tool rather than interest rates, will signal a more hawkish tone when it releases its twice-yearly policy statement Thursday, according to 14 of 15 economists surveyed by Bloomberg.
An equal number of respondents said they expect the MAS to leave its three currency band settings unchanged for now, before tightening policy at its next decision in April 2022. Only one economist sees the monetary authority raising the slope of its currency band this week by 0.5% from its current zero-appreciation level, which would be a tightening move.