Singapore’s central bank, the Monetary Authority of Singapore (MAS), announced its first monetary policy easing in nearly five years on Friday, citing slower economic growth prospects and subdued inflation levels. The MAS stated that it would reduce the slope of the Singapore dollar nominal effective exchange rate (S$NEER) policy band slightly, while keeping the width and center of the band unchanged.
The MAS emphasized that the adjustment aligns with a measured and gradual appreciation path of the S$NEER policy band, aiming to ensure medium-term price stability. It also reaffirmed its commitment to monitoring global and domestic economic developments closely and remaining vigilant against inflation and growth risks. The central bank projected that core inflation would stay below 2% this year, moderating faster than previously expected.
This decision comes amid mixed signals in Singapore’s economy. While recent data revealed strong economic growth last year, geopolitical tensions and increased market volatility have clouded the outlook. Expectations were divided among experts, with half of the 20 economists surveyed by The Wall Street Journal predicting a policy shift, while the other half anticipated no change.
The last time MAS eased its policy was in March 2020 during the onset of the COVID-19 pandemic. At the time, the central bank acted to counter a projected economic contraction and near-zero inflation. The current move echoes concerns over economic uncertainties but reflects a more measured response to evolving risks.
Unlike many central banks that primarily adjust interest rates, the MAS employs exchange rate policy as its primary monetary tool. This approach is particularly effective for Singapore, where trade flows significantly exceed domestic economic activity, enabling the central bank to balance inflationary pressures and growth considerations.
This website is published by Fortune Prime Limited
The information provided on this website is intended for general informational purposes only and does not constitute financial or investment advice. The content on this website is not tailored to the specific circumstances or investment objectives of any individual or entity.
Please be aware that the products mentioned on this website, including Over the Counter (OTC) foreign exchange contract and derivative products carries a high level of risk which may not be suitable for everyone, that may result in the loss of your investment. We strongly recommend seeking professional advice or conducting thorough research before making any investment decisions or engaging in derivative product trading.
This website may provide links to external websites or third-party content for your convenience. However, we do not endorse or take responsibility for the accuracy, completeness, or reliability of any information, products, or services offered by these external sources.
By using this website, you acknowledge that you have read, understood, and agreed to the terms of this disclaimer. If you have any questions or concerns, please contact us for further clarification.
Please note that this disclaimer applies specifically to non-Australian products. If you are located in Australia, different regulations and disclosures may apply.
The availability, terms, and conditions of these products may vary depending on your jurisdiction.
The services listed on this website are not available to residents of the USA, Japan Ukraine, Indonesia, New Zealand, Australia, and North Korea.
FPG is authorized and regulated in various jurisdictions.
Fortune Prime Limited trading as FPG Fortune Prime Global, is authorised and regulated by the Vanuatu Financial Services Commission (VFSC), number 700507 .
Fortune Prime Global Capital Pty Ltd is authorised and regulated by the Australian Securities and Investments Commissions (ASIC), AFSL no. 400364. It is authorised to perform financial services in Australia, limit
This website is published by Fortune Prime
The information provided on this website is intended for general informational purposes only and does not constitute financial or investment advice. The content on this website is not tailored to the specific circumstances or investment objectives of any individual or entity.
Please be aware that the products mentioned on this website, including Over the Counter (OTC) foreign exchange contract and derivative products carries a high level of risk which may not be suitable for everyone, that may result in the loss of your investment. We strongly recommend seeking professional advice or conducting thorough research before making any investment decisions or engaging in derivative product trading.
This website may provide links to external websites or third-party content for your convenience. However, we do not endorse or take responsibility for the accuracy, completeness, or reliability of any information, products, or services offered by these external sources.
By using this website, you acknowledge that you have read, understood, and agreed to the terms of this disclaimer. If you have any questions or concerns, please contact us for further clarification.
Please note that this disclaimer applies specifically to non-Australian products. If you are located in Australia, different regulations and disclosures may apply.
The availability, terms, and conditions of these products may vary depending on your jurisdiction.
The services listed on this website are not available to residents of the USA, Japan, Ukraine, Indonesia, New Zealand, Australia, and North Korea.
Fortune Prime Limited is authorised and regulated by the Vanuatu Financial Services Commission (VFSC), number 700507.
Registered address: 1276 Govant Building, Kumul Highway, Port Vila, Vanuatu.
Business (physical) address: Suite 5, 18-20 Prospect St, Box Hill VIC 3128 Australia.
Financial Services Guide | Privacy Policy | Product Disclosure Statement | Terms & Conditions
This website is published by Fortune Prime Limited.
Investing in Over the Counter (OTC) foreign exchange and derivative products carries a high level of risk and is not suitable for all investors. You do not own, or have, any interest in the underlying assets. We encourage you to consider your investment objectives, your risk tolerance, and trading experience and seek independent financial or tax advisor advice or conducting thorough research before trading. You could lose substantially more than your initial investment so do not invest money you cannot afford to lose. We only provide general advice which does not consider your financial objectives or personal circumstances. The content of this website should not be interpreted as personal advice.
Customers registered on this website will open under Fortune Prime Limited, which is incorporated in Vanuatu with a financial license number 700507 and is regulated by the Vanuatu Financial Services Commission (VFSC).
The Fortune Prime Group of companies is authorized and regulated in various jurisdictions.
Fortune Prime Limited trading as Fortune Prime Global, is authorised and regulated by the Vanuatu Financial Services Commission (VFSC), number 700507 and is Registered address: 1276, Govant Building, Kumul Highway, Port Vila, Vanuatu.
Financial Services Guide | Privacy Policy | Product Disclosure Statement | Terms & Conditions
Please add the WeChat FPG_01, or scan the QR code.
