Monetary policy band set to be widened in April meeting, says Credit Suisse

To guard against higher uncertainty.

The Monetary Authority of Singapore (MAS) is expected to widen the policy band in its meeting this April, a report by Credit Suisse stated.

According to Credit Suisse, the central bank’s assessment of growth outlook probably has not changed drastically enough since January to justify more significant easing.

The report also noted that band widening should be the most appropriate course of action to deal with higher uncertainty surrounding Singapore’s growth trajectory.

“We now see band widening as the most likely policy action come April rather than the downward re-centering that many analysts expect. A downward re-centering may also send too strong a signal that the authority has turned materially more dovish, which we doubt is the case,” stated Credit Suisse.