Singapore to Hold Currency Settings in Face of Sticky Prices
- Some see MAS using dovish tone to pave way for pivot next year
- Core inflation picked up in August, staying above 2%
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Singapore is set to buck the global easing trend and keep its policy bearings on hold as officials use the strength of the currency to tackle still-exorbitant living costs.
The Monetary Authority of Singapore is expected to keep the slope, center and width of its currency band steady, though policymakers may strike a dovish tone to pave the way for a shift in stance next year when price pressures abate. All but three economists in a Bloomberg survey see no change to policy on Monday, and the bigger-than-average options turnover this week suggests that traders are betting on the currency to strengthen after the decision.