It added that the policy band has been raised slightly to “exert a continuing dampening effect on inflation”. However, the width of the policy band has been kept unchanged.
A rise in inflation levels amid fresh shocks to global commodity prices and supply chains has pushed the Monetary Authority of Singapore (MAS) to further tighten its monetary policy settings.
What this means is that the mid-point of the exchange rate policy band at the prevailing level of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) has been re-centred, the central bank announced on April 14.
