January 24, 2025 at 01:27AM
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.