Singapore’s central bank eased monetary policy for the first time since 2020 – recap

The news on this is here from earlier:

• Monetary Authority of Singapore will slightly reduce the slope of the S$NEER policy band

Recapping/summary:

• Singapore’s central bank, the Monetary Authority of Singapore (MAS), eased monetary policy for the first time since 2020, citing slower growth and inflation.

As background to today:

• MAS tightened policy five times between 2021–2022 to combat inflation.
• It paused tightening in April 2023 as economic growth concerns took precedence over inflation risks.

More

• MAS slightly reduced the slope of its policy band for the Singapore dollar nominal effective exchange rate (S$NEER) but kept the band’s width and center unchanged to ensure medium-term price stability.

• Core inflation is projected to be 1.0%–2.0% in 2025, down from the previous 1.5%–2.5% forecast. It has cooled significantly from 5.5% in early 2023 to 1.8% in December.

• GDP growth in 2024 was 4.0%, exceeding the government’s 3.5% projection, but MAS expects slower growth of 1%–3% in 2025.

• The Singapore dollar initially dipped against the U.S. dollar but later stabilized

• MAS indicated that further easing will depend on core inflation trends and the pace of economic slowdown.

This article was written by Eamonn Sheridan at www.forexlive.com.