MONEY MASTER

Singapore has become the  first Asian economy to tighten monetary policy  in response to rising inflation pressures driven by surging global energy prices amid the Middle East conflict.  MAS Tightens Exchange Rate Policy Monetary Authority of Singapore  (MAS) announced it will  increase the slope of its exchange rate policy band , a move widely anticipated by economists. Unlike most central banks, MAS uses the  Singapore dollar exchange rate (S$NEER)  as its primary policy tool instead of interest rates. The central bank  left the band’s width and midpoint unchanged , signaling a  measured tightening approach  while maintaining flexibility. Oil Prices Driving Inflation Outlook MAS highlighted that  imported energy costs have already risen , and warned that  oil prices are likely to remain elevated  even if supply disruptions ease. Higher energy prices are expected to  feed through global supply chains , increasing a b...

Quick Summary Bank of Korea keeps benchmark rate at  2.50% New  dot-plot chart shows majority see no change for 6 months 2026 growth forecast raised to  2.0% Chip export boom supports economic outlook Rate Decision: Pause Confirmed The  Bank of Korea  kept its benchmark interest rate unchanged at  2.50% , in line with expectations. All 34 economists polled by Reuters had predicted no move. Key point: Policymakers are signalling stability — not easing, not tightening. Dot Plot Debut: Clear Message of No Hike For the first time, the BOK introduced a  Federal Reserve-style dot plot , showing rate expectations over the next six months. Out of 21 dots 16 pointed to 2.50% Suggesting  no change until at least August This indicates a strong consensus for a  prolonged pause . Growth Outlook Improved The BOK raised its 2026 growth forecast to  2.0%  from 1.8%. The upgrade reflects: Strong semiconductor exports Chip boom led by: Samsung Electr...

Malaysia has welcomed the US decision to pause its sweeping tariff hikes , but  Trade and Industry Minister Tengku Zafrul Abdul Aziz  stressed that the  volatile policy environment still poses major challenges for ASEAN . What Happened: US President  Donald Trump announced a 90-day pause  on the planned increase in  reciprocal tariffs , keeping a  lower 10% tariff  in place for now. China is excluded , facing a steep  125% tariff  for not cooperating on trade negotiations. Malaysia's Stance: Zafrul described the US decision as  welcome , but warned that  “significant challenges” remain  due to  policy uncertainty . He emphasized Malaysia’s role in  advocating for balanced and predictable trade  through ASEAN. “These latest developments will be discussed at the ASEAN Economic Ministers' Meeting I’m chairing today,” he shared. Malaysia's Trade Game Plan: Trade diversification : Exploring new markets while stre...

The Thai baht fell over 1% against the US dollar on Tuesday, hitting 34.739 per dollar — its weakest level since August — as investors grew wary of Thailand's central bank independence . The decline follows news that Kittiratt Na-Ranong , a former finance minister and critic of the Bank of Thailand’s (BOT) monetary policy, is set to be appointed as the central bank’s chairman. Kittiratt’s appointment has raised concerns that the government is increasing pressure on the BOT to cut interest rates , potentially affecting its autonomy. “ As long as the central bank’s independence is at risk, investors will likely favor dollar-baht trades,” commented Eugenia Victorino, head of Asia strategy at Skandinaviska Enskilda Banken. The baht has declined over 7% this quarter , the weakest performance among Asian currencies, as pressure on BOT to lower borrowing costs grows. Compounding the baht’s outlook, Donald Trump’s recent election victory has heightened fears of new trade tariffs , whic...