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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