Singapore’s central bank is widely expected to keep its policy unchanged this week, taking a cautious stance amid uncertainty over potential U.S. tariffs. According to a Bloomberg survey (gated), 14 of 19 economists predict the Monetary Authority of Singapore (MAS) will maintain its current settings, while a minority, including Goldman Sachs and Bank of America, expect further easing.After cutting policy twice earlier this year to support growth, MAS is now likely to pause, supported by stronger-than-expected economic data. Preliminary figures show Singapore avoided a technical recession, with resilience in manufacturing, services exports, and construction underpinning the recovery. The MAS, which manages policy via the exchange rate rather than interest rates, appears set to wait and assess external risks.I posted an earlier preview:Chatter of an imminent monetary policy easing from Singapore's central bank---Note that the MAS's key monetary policy tool is its exchange rate policy. It adjusts the exchange rate of its dollar (SGD) instead of changing domestic interest rates like most other economies.It manages the SGD exchange rate against a basket of currencies of Singapore's major trading partners.sets the path of the policy band of the Singapore dollar nominal effective exchange rate (S$NEER)this serves to strengthen or weaken the local currency against those of its main trading partnersS$NEER is a combined index made up of bilateral exchange rates between Singapore and its major trading partnersis a trade-weighted exchange rateMAS permits the S$NEER to move up and down within the policy band (exact levels are not disclosed). If it goes out of this band, the MAS steps in by buying or selling Singapore dollars.The policy band has three parameters that the MAS can adjust:the slope, the level and the widthadjusting the slope will influence the pace at which the Singapore dollar strengthens or weakensadjusting the level, or mid-point, of the policy band allows for an immediate strengthening or weakening of the S$NEER,widening the policy band allows for more volatility of the S$NEERthese parameters are what are reviewedVisit investingLive.com (formerly ForexLive.com) for additional, original views. This article was written by Eamonn Sheridan at investinglive.com.