Central Banks
Singapore Pivots to Monetary Easing as It Flags Growth Risks
- MAS says will ‘reduce slightly’ the slope of its policy band
- Central bank lowers core inflation forecast to average 1%-2%
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Singapore’s central bank loosened its monetary policy settings for the first time in nearly five years on expectations price pressures will keep abating and growth momentum will slow.
The Monetary Authority of Singapore, which uses the exchange rate as its main policy tool rather than interest rates, will “reduce slightly” the slope of its policy band, according to a statement Friday. There was no change to the width of the band or the level at which it is centered.