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 in April and October, 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.