MAS to tighten policy again in April

SINGAPORE - The Monetary Authority of Singapore (MAS), the republic's central bank, is expected to further tighten monetary policy at its half-yearly review next month.

The MAS manages monetary policy by setting an exchange rate band for the Sing dollar, against a basket of undisclosed currencies. By recentring the midpoint, it allows the dollar to move up or down within that band.

The latest monetary stance - to be released in the MAS's monetary policy statement around the second week of April - will likely be milder compared to the central bank's two aggressive tightening moves last year.

The Singapore dollar has appreciated around 11 per cent against the greenback since the beginning of last year.

Ongoing concerns over inflation and global economic impact following the Japan disaster and turmoil in the Middle East may be factors that could prompt the central bank to take that stance.

Singapore's economy is still expected to grow strongly this year.

ORIGINAL SOURCE

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