MAS eases property refinancing rules; central bank likely to keep policy on hold in October

Singapore’s central bank, the Monetary Authority of Singapore, has eased rules of property refinancing. With immediate effect, current property owners would be exempted from a 60 percent cap of salary on their total debt servicing ratio, noted Commerzbank.

This move appears to avoid a deeper correction in prices of homes after the U.S. Fed begins normalizing its interest rate. Singapore’s property prices, since 2013, have dropped by almost 10 percent after the implementation of property curbs.

The latest move is expected to have restricted implications on USD/SGD or the central bank’s monetary policy. The Singaporean central bank’s next policy meeting would take place in October, where it is likely to keep its policy on hold barring any unforeseen shocks, according to Commerzbank.