The Monetary Authority of Singapore (MAS) delivered a surprising aggressive policy tightening. Subsequently, economists at ING expect the Singapore dollar to strengthen over the coming months.

MAS carries out off-cycle tightening

“Accelerating inflation prompted the Monetary Authority of Singapore to carry out an off-cycle tightening move, re-centring the mid-point of the policy band to prevailing levels.”

“The SGD steadied after the unscheduled tightening by the MAS and could appreciate further in the coming months as the string of tightening pulls SGD stronger.”