Monetary Policy Eased in Singapore

March 30, 2020

The semi-annual monetary policy review by officials at the Monetary Authority of Singapore cut the slope of the Singapore dollar’s allowed trading range to zero percent. This matches the slope allowed from April 2016 through April 2018. The center of the trading band will be is present level, and the width of the band remains unchanged. In Singapore, interest rate policy is subordinated to an exchange rate target. Today’s announced easing was not as extreme as many analysts had been forecasting. An element of caution perhaps reflects to significant degree of uncertainty attached to the depth and duration of Singapore’s recession. Because of the Covid-19 pandemic, authorities are now projecting negative GDP growth in 2020 of between 1% and 4% and a drop in consumer prices of up to 1.0%.

Copyright 2020, Larry Greenberg. All rights reserved. No secondary distribution without express permission.



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