SINGAPORE AUTHORITY ALLOWS MODEST, GRADUAL APPRECIATION OF CURRENCY
SINGAPORE, The Monetary Authority of Singapore (MAS) decided on Friday to increase slightly the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, from zero percent, without changing the width of the policy band and the level at which it is centered.
The MAS said this policy stance is consistent with a modest and gradual appreciation path of the S$NEER policy band that will ensure medium-term price stability.
According to the authority, Singapore’s economy will continue steady growth in 2018. It forecasts the gross domestic product (GDP) growth in 2018 will come in slightly above the middle of the forecast range of 1.5-3.5 percent.
Meanwhile, the inflation of consumer price index for all items (CPI-All Item) is predicted to be in the upper half of the 0-1 percent forecast range for the whole year, and the MAS core inflation, which excludes the costs of private road transport and accommodation, will be within the upper half of the 1-2 percent forecast range.
MAS released the statement right after the Ministry of Trade and Industry released the country’s GDP figures for the first quarter of 2018, which are based on advance estimates.
According to the ministry, the Singapore economy grew by 4.3 percent year-on-year in the first quarter of 2018, which was higher than the GDP growth of 3.6 percent for the fourth quarter and also 3.6 percent for the whole year of 2017.
Source: NAM News Network