Singapore c.bank Says Policy Provides Appropriate Economic Support

Singapore’s central bank said recent monetary policy easings will support the economy and boost inflation over the next two years against a backdrop of weakening growth among the city-state’s key trading partners.

Earlier this month, the central bank unexpectedly eased its exchange-rate based monetary policy, its third easing in 15 months, to bolster growth.

In its half-yearly macroeconomic review released on Wednesday, the Monetary Authority of Singapore (MAS) said the latest easing, along with the government’s budget this year, provided appropriate support for the economy.

“Cumulatively, these policy recalibrations will help keep the level of real GDP close to its potential in 2016 and 2017,” the central bank said in the review.

“These moves will also ensure price stability over the medium term by providing a partial offset to disinflationary pressures, boosting CPI-all items inflation by an average of 0.7 percentage point per annum over the next two years.”

Reuters

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Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.