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Singapore central bank tightens policy in surprise move

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SINGAPORE, Oct 14 (Reuters) – Singapore’s central bank unexpectedly tightened its financial policy on Thursday, saying the move will guarantee value stability over the medium-term.

The Monetary Authority of Singapore (MAS) manages financial policy by trade price settings, somewhat than rates of interest, letting the Singapore greenback rise or fall towards the currencies of its foremost buying and selling companions inside an undisclosed band.

It adjusts its policy by way of three levers: the slope, mid-point and width of the policy band, often known as the Nominal Effective Exchange Rate, or S$NEER.

The MAS mentioned it will elevate barely the slope of the S$NEER policy band, from zero p.c beforehand. The width of the policy band and the extent at which it’s centred might be unchanged, it mentioned.

Eleven of 13 economists polled by Reuters had forecast the MAS would maintain its policy unchanged, whereas solely two had anticipated a slight tightening.

Reporting by Singapore bureau; Editing by Sam Holmes

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