MAS Raise S$NEER Policy Band Appreciation Rate, Keep Width & Centre Level Unchanged

The Monetary Authority of Singapore release their monetary policy statement:

• Owing to "a further upward shift in Singapore’s inflation outlook," the MAS have judged that "it is appropriate to make another pre-emptive adjustment in its monetary policy stance at this juncture."
• "The factors that drove global and regional inflation higher in late 2021 are likely to remain in play for a period. Domestic inflation will be exposed to these external pressures as well as the tight labour market."
• MAS is revising its inflation forecasts for 2022. MAS Core Inflation is now projected to be 2.0–3.0% this year, from the 1.0–2.0% expected in October. Meanwhile, CPI-All Items inflation is expected to be 2.5–3.5%, from the earlier forecast range of 1.5–2.5%."
• "MAS will therefore raise slightly the rate of appreciation of the S$NEER policy band. The width of the policy band and the level at which it is centred will be unchanged. This move builds on the pre-emptive shift to an appreciating stance in October 2021 and is appropriate for ensuring medium-term price stability."
• Click here to view the full statement.