The news on this is here from earlier:
Recapping/summary:
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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
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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.
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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.
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GDP growth in 2024 was 4.0%, exceeding the government’s 3.5% projection, but MAS expects slower growth of 1%–3% in 2025.
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The Singapore dollar initially dipped against the U.S. dollar but later stabilized
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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.
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