What a neutral stance means is that the central bank has made no change to the width of the band in which Singapore dollar nominal effective exchange rate (S$NEER) is allowed to float.
The Monetary Authority of Singapore (MAS) has maintained its monetary policy stance – in line with expectations from market watchers – at its half-yearly review on Oct 14.
This neutral position comes after two consecutive rounds of easing - with the first being in its Oct 2019 review and the second coming in this year’s April review. It comes as the economy is tipped to recover in 2021, despite the weak underlying momentum, MAS explains.
