SINGAPORE: Inflation is expected to decrease as Singapore’s central bank kept its monetary policy steady on October 14.
Core inflation, which does not include housing and private transport, is predicted to drop to around 2% by the end of 2024.
The Monetary Authority of Singapore (MAS) noted that the economy is showing signs of growth.
“Unless there is a decline in global demand, the economy should keep growing steadily and remain on track for 2025,” MAS stated.
This is the sixth consecutive time the central bank has maintained its policy.
MAS will continue the current rate of appreciation for the Singapore dollar exchange rate and will not change the width or center of its policy band.
A Reuters poll of ten analysts showed that nine expected no changes in the policy.
Unlike many countries that use interest rates, Singapore’s monetary policy focuses on the exchange rate, allowing the Singapore dollar to fluctuate against those of its main trading partners.
The MAS can adjust its policies by changing the band’s slope, mid-point, and width. The last policy change occurred in October 2022.
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