Economics
Singapore’s Central Bank Takes Unprecedented Easing Action
- MAS recenters currency band down, reduces slope to zero
- Government has ramped up fiscal support as virus spreads
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Singapore’s central bank took unprecedented easing steps Monday to support a trade-reliant economy being slammed by the coronavirus outbreak.
The Monetary Authority of Singapore, which uses the exchange rate as its main policy tool rather than a benchmark interest rate, lowered the midpoint of the currency band and reduced the slope to zero. That implies the central bank will allow for a weaker exchange rate to help support export-driven growth and to ward off deflationary threats.