Ask Fear & Greed: Why doesn't the RBA copy Singapore?

Listener Lynn asks: It's commonly said that the RBA's use of interest rates for monetary policy is a blunt tool which affects mortgage holders disproportionately. I've recently heard of an alternative: the Monetary Authority of Singapore manages monetary policy not by using interest rates.  Instead it lets the Singapore dollar rise or fall against the currencies of its main trading partners within an undisclosed trading band, known as the Singapore dollar nominal effective exchange rate. Why don't more reserve banks do this? Join Sean Aylmer & Michael Thompson as they answer questions on business, investing, economics, politics and more.If you have your own question for Ask Fear & Greed, get in touch via our website, LinkedIn, Instagram or Facebook!Find out more: https://fearandgreed.com.au/See omnystudio.com/listener for privacy information.