Monetary Authority of Singapore Announces Unscheduled Tweak of its Currency Policy
January 28, 2015
Interest rate policy in Singapore is subordinated to a targeted exchange rate trading corridor, defined by a midpoint, a fixed trading bandwidth, and the slope of the corridor. Normally, policy is reviewed in April and October. However, after revising projected CPI inflation down a full percentage point to plus-or-minus 0.5% this year, officials flattened the slope of the Singapore dollar’s trading corridor, while keeping the band mid-point and width unchanged. Officials will continue to allow the currency to appreciate against a trade-weighted effective index over time.
Copyright 2015, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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