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4w ago

MAS Holds S$NEER Policy Steady After Early-Year Easing

Maintaining the Singapore dollar’s exchange rate settings, the MAS repeated its forecast for 0.5%–1.5% inflation in 2025 against ongoing global uncertainties.

A view of the Monetary Authority of Singapore's headquarters in Singapore June 28, 2017. Picture taken June 28, 2017. REUTERS/Darren Whiteside/File Photo
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Overview

  • On July 30, MAS left the pace, midpoint and width of its S$NEER policy band unchanged after easing twice in January and April.
  • Singapore’s GDP expanded 4.3% year-on-year in Q2, buoyed by front-loading of US orders and resilient global trade activity.
  • Core inflation remained at 0.6% in Q2, prompting the MAS to reaffirm its full-year core and headline inflation forecast of 0.5%–1.5%.
  • The central bank noted that risks of a sharp global growth downturn have receded alongside easing trade tensions and more benign financial conditions.
  • MAS warned that delayed US tariff implementations and potential geopolitical shocks could pressure externally oriented sectors and moderate future growth.