SINGAPORE: Inflation is expected to decrease as Singapore’s central bank held its monetary policy steady on Oct 14. Core inflation, excluding housing and transport, is projected to drop to about 2% by the end of 2024.
The Monetary Authority of Singapore (MAS) noted that economic growth is improving. They stated that as long as global demand remains stable, the economy should grow steadily through 2025.
This is the sixth consecutive time MAS has maintained its policy. They will continue with the current exchange rate policy of the Singapore dollar and will not change its parameters.
A recent Reuters poll of 10 analysts indicated that nine expected the MAS to keep the policy unchanged. Unlike other countries, Singapore’s monetary policy focuses on exchange rates rather than interest rates.
The MAS can adjust the policy by changing the exchange rate band’s slope, midpoint, and width, with the last adjustment made in October 2022.
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