The BBC Framework
MAS' operating framework for monetary policy is characterised by a 'Basket', 'Band' and 'Crawl'.
- The Singapore Dollar Nominal Effective Exchange Rate (S$NEER), which is a trade-weighted basket of currencies, is MAS' intermediate target of monetary policy.
- The S$NEER is allowed to float within a policy band.
- The policy band is set to crawl or typically rise at different rates over time.
At each monetary policy review, MAS sets a level and path for the S$NEER policy band to ensure price stability over the medium term. MAS' commitment to achieving low and stable inflation through this framework is the nominal anchor for the Singapore economy.
Find out how this framework helps to maintain price stability.