Barclays: MAS may maintain its policy unchanged before 2025

FXStreet News: According to data from FXStreet on July 26th, Barclays Bank stated in a report that the Monetary Authority of Singapore (MAS) has not yet signaled a recent shift towards tightening or loosening. We still believe that MAS will maintain its forex policy settings unchanged until 2025. The MAS's downward adjustment of the overall inflation expectations for 2024 has limited correlation with its forex policy. 'We certainly do not see this as a dovish signal,' wrote economists Brian Tan and strategist Audrey Ong. They stated that the July statement confirmed MAS's expectation of core inflation rate around 2% in 2025, which is noteworthy and indicates that policymakers still do not see a significant need to relax or tighten the nominal effective Exchange Rate parameters of the Singapore dollar. Barclays believes that the 2% inflation level is crucial, as without an official inflation target from MAS, this could be its comfort zone.