SINGAPORE (June 20): Any decision by the Monetary Authority of Singapore to tinker with the currency policy hinges on the "assessment of the real economy" even if Britain were to exit the EU, Citi says.

The UK is scheduled to hold the referendum of Thursday, an event that may weigh on financial markets globally.

“If Brexit were to happen, whether MAS re-centers the band downwards will depend on its assessment of the real economy, which may depend heavily on incoming data,” Citi says.

Singapore, which has been facing deflation for more than a year, reports the latest consumer price index data on Thursday.

“While an outsized surge in financial market volatility may trigger market speculation on band-widening, we do not see an immediate urgency to do so, as MAS can simply tolerate larger swings within the existing policy band,” it notes.