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Singapore central bank leaves width of policy band, centre point unchanged

Singapore central bank left its width of policy band and centre point unchanged, assessing that a neutral policy stance will be needed for an extended period to ensure medium-term price stability.

Additional headlines via Reuters:

Singapore's economy shrank 1.9 percent in the first quarter (Reuters survey of a contraction of 1.9 percent )

From the previous three months on an annualised basis (In the fourth quarter GDP had jumped 12.3 percent quarter-on-quarter.)

Weighed by contractions in manufacturing and services

Singapore central bank MAS will therefore maintain the rate of appreciation of the S$NEER policy band at zero percent

Width of the policy band and the level at which it is centred will be unchanged

Assesses that a neutral policy stance will be needed for an extended period to ensure medium-term price stability

Current policy band provides some flexibility for the s$neer to accommodate the near-term weakness in inflation and growth

Core inflation is projected to average 1-2%, compared to 0.9% in 2016

Says CPI-all items inflation is expected to rise to 0.5-1.5% from −0.5% last year

Singapore's central bank is the Monetary Authority of Singapore (MAS)
 

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