MAS facilitates monetary policy, to prevent Singapore dollar from growing
MAS eases monetary policy, to prevent Singapore dollar from growing
The Monetary Authority of Singapore (MAS) said it’s setting the rate of appreciation of the Singapore dollar policy band at zero percent in a surprise easing of its monetary policy announced on Thursday (14 April).
“This isn’t a policy to depreciate the national money,” MAS said, adding that it just removed the small and gradual appreciation avenue of the Singapore dollar nominal effective exchange rate (S$NEER) policy group that has been in place.
“ the amount where it’s centred and The width of the policy band is going to not be changed it included.
The central bank, which uses the economy to be guided by the Singapore dollar as an alternative to interest rates, manages monetary policy by letting the local currency rise or fall from the currencies of its principal trading partners. See Treasure Crest and Treasure Crest EC
Meanwhile, MAS Core Inflation has also been subdued.
According to MAS, the Singapore economy is “ projected to enlarge at a more modest rate in 2016 than envisaged in the October policy review. MAS Core Inflation also needs to pick up more gradually than previously anticipated, and is now likely to fall below 2 percent on average over the moderate period.” over the course of 2016
It added that the move to some neutral policy stance of zero percent appreciation follows the steps that were measured that the central bank has taken to reduce the speed of recognition of the policy band in October 2015 and January .
“The real results of S$NEER movements since October 2015 within the six months has in fact been a zero percent appreciation in comparison with the preceding six-month span it said. “The accumulative effects of past S$NEER movements and the newest policy path will continue to make certain price stability over the medium term,” it included.
Following the announcement, the Singapore dollar weakened 0.9 percent to $1.36 degrees to the US dollar—its poorest since March 29. At around 11.22am, the Singdollar was trading at $1.3610 to the greenback from Wednesday’s close of $1.3501.