Commerzbank’s FX Analysis report by Charlie Lay and Moses Lim highlights that the Financial Authority of Singapore (MAS) has maintained its present coverage stance, leaving the SGD NEER unchanged. MAS has revised its inflation forecast for 2026 to 1-2% from 0.5-1.5%, indicating a readiness to answer inflationary pressures. The SGD NEER is at the moment estimated to be +0.9% above the mid-point for USD-SGD at 1.2640. The report emphasizes that MAS is strategically positioned to handle financial uncertainties.
MAS maintains coverage amid inflation considerations
“MAS revised up the headline and core inflation forecast for this 12 months to 1-2% from 0.5-1.5% in October final 12 months. MAS is strategically positioned to answer the upside dangers to inflation or draw back dangers to progress.”
“Within the transient assertion, MAS mentioned that it ‘is in an applicable place to reply successfully to any danger to medium-term value stability and can proceed to intently monitor financial developments amid uncertainties within the exterior atmosphere.'”
“For the SGD NEER valuation, we estimate it’s on the sturdy finish of the band at +0.9% above the mid-point for USD-SGD at 1.2640, USD-MYR at 3.9330, and USD-CNY at 6.9490. The +/-2% vary across the mid-point corresponds to USD-SGD at 1.2510-1.3020, with the mid-point at 1.2760, ceteris paribus.”
“General, it was established order from MAS. They’re strategically and well-positioned to deal with the panorama forward. There isn’t any urgency to ease financial circumstances additional, given the sturdy progress momentum.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
