Singapore monetary policy on Oct 13: Here's what to expect

Private sector economists expect Singapore's growth to quicken to 3.1 percent in the three months to September, according to an analyst poll.

A view of the Monetary Authority of Singapore's headquarters in Singapore Reuters

The government will release Singapore's third-quarter advance growth estimates and monetary policy decision on October 13 at 8am local time.

The central bank is widely seen sticking to a neutral stance on Friday after annual headline consumer price index rose more slowly than forecast in August.

The Monetary Authority of Singapore (MAS), which uses the exchange rate as its main tool, has kept its policy stance unchanged since April 2016.

The central bank, which meets twice a year, said at its last meeting in April the neutral stance is appropriate for an "extended period of time."

Singapore's growth outlook is brightening amid a resurgence in global trade, putting the prospect of policy tightening back on the table.

Economists are watching closely for any tweaks to the language while also monitoring data that might give the central bankers reason to consider tightening measures.

Speculation is building among analysts, including from United Overseas Bank, HSBC Holdings and Macquarie Bank, that the MAS may remove that language in its October statement to prepare the market for some tightening in the first half of 2018.

According to Pacific Investment Management Co. (Pimco), there's a chance the Monetary Authority of Singapore may surprise financial markets by tightening its policy stance this month, Bloomberg reported last week.