SGD: Policy-induced appreciation to counter inflation – DBS

DBS Group Research economists Taimur Baig and Chua Han Teng argue that recent commodity price shocks will inevitably lift inflation in Singapore, but highlight the role of the Singapore Dollar and policy buffers. DBS Group Research economists Taimur Baig and Chua Han Teng argue that recent commodity price shocks will inevitably lift inflation in Singapore, but highlight the… DBS Group Research economists Taimur Baig and Chua Han Teng argue that recent commodity price shocks will inevitably lift inflation in Singapore, but highlight the role of the Singapore Dollar and policy buffers. DBS Group Research economists Taimur Baig and Chua Han Teng argue that recent commodity price shocks will inevitably lift inflation in Singapore, but highlight the role of the Singapore Dollar and policy buffers. They expect the Monetary Authority of Singapore (MAS) to allow further appreciation of the Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER) to contain imported inflation, complementing targeted fiscal measures and ample reserves that support economic resilience.MAS… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.