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Singapore’s currency management building in Singapore.
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Singapore weakened the monetary policy on Friday for the first time since 2020, citing faster than expected, a decrease in inflation and warning about slowing growth.
Singapore’s monetary department said it would slightly reduce the inclination of the exchange rate politician known as the nominal effective exchange rate of the Singapore dollar or S $ NEER.
In his release, MAS said Singapore growth is expected to slow down this year, and the basic inflation “decreased faster than expected.”
He added that inflation will remain lower than 2% this year, “reflecting a return to low and stable price pressure in the economy.”
It is projected that total inflation will average 1.5% -2.5% in 2025 compared to 2.4% in 2024.
MAS also deteriorated its basic inflation predictions – without housing prices and private transport – on average up to 1%-2%in 2025, below 1.5%-2.5%, predicted in it Release of monetary policy for October 2024
Singapore GDP growth is projected to grow by 1-3% compared to 4% in 2024.
“The impact of shifts in world trade policy can affect domestic production and trade -related services,” MAS writes.
Unlike other central banks that set up domestic loans rates, MAS changes the Singapore Dollar exchange rate settings.
The Central Bank strengthens or weakens its currency against the basket of its main trading partners, thus actually setting S $ Neer. The exact exchange rate is not set, on the contrary, S $ NEER can move within the set policy range, the exact levels of which are not revealed.
The Singapore dollar A little weakened after the decision against the dollar, slightly depreciated up to 1.3556, while in the city-state The Straits Times index He rose slightly.
