SINGAPORE, Oct. 14 (Xinhua) - The Monetary Authority of Singapore (MAS) on Thursday announced that it will raise slightly the slope of the Singapore dollar Nominal Effective Exchange Rate (S$NEER) policy band, up from zero percent previously.

This indicates the central bank has tightened its monetary policy.

The width of the policy band and the level at which it is centered will be unchanged, said the authority, adding that this appreciation path for the S$NEER policy band will ensure price stability over the medium term while recognizing the risks to the economic recovery.

MAS said that the growth in the Singapore economy is likely to remain above trend in the quarters ahead. Barring a resurgence of the virus globally or a setback in the pace of economic reopening, output should return to around its potential in 2022.

It also said that Singapore's external and domestic cost pressures are accumulating, reflecting both normalizing demand as well as tight supply conditions.

According to the authority, Singapore's MAS Core Inflation, which excludes the costs of accommodation and private transport, rose to a year-on-year 1.1 percent in July-August, from 0.7 percent in the second quarter of this year.

For 2021 as a whole, the MAS Core Inflation will come in near the upper end of the 0-1 percent forecast range, and is expected to increase further to 1-2 percent in 2022. The CPI-All Items inflation will come in around two percent in 2021 and average 1.5-2.5 percent next year. Enditem

Related

Go to Forum >>0 Comment(s)