On Tuesday, Central Bank of Singapore astonished market with unchanged currency policy. The authority believes that improved viewpoint of global development will strength trade-reliant economy.
As per the recent statement of Monetary Authority of Singapore (MAS), the economy of the city was about to fulfill the expectations of analysts. It indicates that the global growth outlook has enhanced to some extent. The G3 upturn is the major reason behind it.
Thus, the central bank decided to keep the Singapore’s dollar policy unchanged. Analysts think that central bank seems satisfied with the domestic growth. However, the global outlook is still the same since last three months.
Chua Hak Bin, head of emerging Asia economics for Bank of America Merril Lynch, discussed the current situation in detail. He informs that the recent evaluation of Central Bank shows hopes on dollar.
It appears as if MAS is ready to take a positive attitude towards the economy. They chose to stay on the old policy when the entire central banks changed theirs.
Earlier, a large number of analysts predicted that MAS will slightly change the policy. Hence, the move is pretty surprising for everyone.
The monetary policy allows MAS to ascend or descend Singapore dollar.