The Monetary Authority of Singapore (MAS) is scheduled to announce its monetary policy decision on 24 January. The central bank is expected to maintain its current policy stance, which has been in place since October 2022, as inflation remains elevated.
The MAS uses an exchange rate-centered monetary policy framework, adjusting the Singapore dollar's nominal effective exchange rate (NEER) to manage inflation. The NEER is a weighted average of the Singapore dollar against a basket of currencies of its major trading partners.
The MAS's monetary policy stance will be closely watched by investors and businesses, as it provides insights into the central bank's outlook for the Singapore economy and inflation. The decision will also impact the Singapore dollar's exchange rate.