MAS likely to do aggressive tightening

SINGAPORE: A combination of geopolitical shocks, pre-existing inflationary pressures and a tightening wage-price spiral could prompt the Monetary Authority of Singapore (MAS) to adopt a more hawkish tightening policy on the Singapore dollar this month.

In his latest assessment paper, Vishnu Varathan, head of economics and strategy for Asia and Oceania Treasury at Mizuho Bank, said he expects the MAS to do a “double-barrelled re-centreing and steepening of the slope” of the Singapore dollar nominal effective exchange rate (S$Neer) at its policy meeting this month.