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Singapore central bank tightens monetary policy for first time in six years

Reuters  |  SINGAPORE 

(Reuters) - Singapore's tightened for the first time in six years on Friday, saying the city-state's should remain on a steady expansion path in 2018, even as it acknowledged risks from a possible escalation of U.S.-trade tensions.

The Monetary Authority of (MAS) said it would slightly increase the slope of the dollar's policy band from zero percent previously, while keeping the width and mid-point of the band unchanged.

"This policy stance is consistent with a modest and gradual appreciation path of the S$NEER policy band that will ensure medium-term price stability," the MAS said.

The MAS manages through exchange rate settings, rather than interest rates, letting the dollar rise or fall against the currencies of its main trading partners within in an undisclosed policy band based on its nominal effective exchange rate.

Twelve of 19 analysts in a survey predicted the MAS would tighten this month for the first time since April 2012, by slightly increasing the appreciation rate of the dollar's policy band from zero percent.

The remaining seven analysts expected the to keep its policy-settings unchanged.

(Reporting by Masayuki Kitano; Editing by Sam Holmes)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 05:54 IST