25-01-2022, 03:39 PM
Tang See Kit
25 Jan 2022 02:14PM
(Updated: 25 Jan 2022 02:49PM)
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The central bank, which typically holds its policy meetings in April and October, said it will “raise slightly” the rate of appreciation of the Sing dollar nominal effective exchange rate (S$NEER) policy band.
The width of the policy band and the level at which it is centred remained unchanged, it said.
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By raising the slope of its policy band on Tuesday, the MAS is effectively allowing the Sing dollar to appreciate, making imports cheaper and exports more expensive.
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Core inflation is hence expected to pick up in the near term and could reach 3 per cent by the middle of the year before moderating, said the central bank.
This is due to “rapidly accumulating” external and domestic cost pressures, such as supply disruptions pushing up imported food costs, higher energy prices and a tight labour market.
......
Economists said the central bank’s move to allow for a stronger Sing dollar will go towards taming price increases for the man on the street, although the impact will not be immediate.
......
the effects of monetary policy tweaks will take time – from six to nine months moving forward – to materialise.
......
A stronger Sing dollar compared to the currencies of other countries may also suggest more favourable exchange rates for travellers heading overseas
......
All eyes will also fall on what higher inflation will mean for the planned increase in Goods and Services Tax (GST).
Better to read full report at: https://www.channelnewsasia.com/business...ns-2457641
25 Jan 2022 02:14PM
(Updated: 25 Jan 2022 02:49PM)
......
The central bank, which typically holds its policy meetings in April and October, said it will “raise slightly” the rate of appreciation of the Sing dollar nominal effective exchange rate (S$NEER) policy band.
The width of the policy band and the level at which it is centred remained unchanged, it said.
......
By raising the slope of its policy band on Tuesday, the MAS is effectively allowing the Sing dollar to appreciate, making imports cheaper and exports more expensive.
......
Core inflation is hence expected to pick up in the near term and could reach 3 per cent by the middle of the year before moderating, said the central bank.
This is due to “rapidly accumulating” external and domestic cost pressures, such as supply disruptions pushing up imported food costs, higher energy prices and a tight labour market.
......
Economists said the central bank’s move to allow for a stronger Sing dollar will go towards taming price increases for the man on the street, although the impact will not be immediate.
......
the effects of monetary policy tweaks will take time – from six to nine months moving forward – to materialise.
......
A stronger Sing dollar compared to the currencies of other countries may also suggest more favourable exchange rates for travellers heading overseas
......
All eyes will also fall on what higher inflation will mean for the planned increase in Goods and Services Tax (GST).
Better to read full report at: https://www.channelnewsasia.com/business...ns-2457641
