Singapore’s central bank reduces slope of currency band to zero

The Monetary Authority of Singapore adjusts monetary policy for the country through currency control, not via interest rates.

MAS says it will adopt a zero percent per annum rate of appreciation of the policy band starting at the prevailing level of the SGD NEER

  • there will be no change to the width of the policy band.
  • Says this policy decision hence affirms the present level of the S$NEER, as well as the width and zero percent appreciation slope of the policy band going forward
  • core inflation is likely to remain below its historical average in the near and medium term
  • Says MAS’ money market operations will at the same time provide sufficient liquidity to the financial system
  • will continue to be vigilant over developments in the economy and financial markets, and stands ready to curb excessive volatility in the SGD NEER
  • says both MAS core inflation and CPI -all items inflation are expected to average between −1 and 0% in 2020
  • says external sources of inflation are likely to weaken in the near term amid the global downturn
  • resident unemployment rate is expected to rise and wage growth ease
more to come
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