Singapore eases monetary policy for 1st time since 2020

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Singapore eases monetary policy for 1st time since 2020

Source: Xinhua | 2025-01-24 | Editor:Ines

The Monetary Authority of Singapore (MAS) announced on Friday a slight easing of its monetary policy, marking the first such move since 2020 and the first adjustment in two years.

The authority said it would reduce the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band slightly, while maintaining the width of the policy band and the level at which it is centered.

The decision comes amid a slowdown in Singapore's economic growth momentum and faster-than-expected moderation in core inflation this year, it said.

The MAS forecasts core inflation, which excludes the costs of accommodation and private transport, to average 1.0 percent to 2.0 percent in 2025, while CPI-All Items inflation is projected to average 1.5 percent to 2.5 percent.