The first of two monetary policy decisions from the MAS for the year
- the next meeting is in October
The MAS operate mon pol via the exchange rate, kept unchanged as was expected:
- maintain a zero percent per annum rate of appreciation of the policy band
- says width of the policy band and the level at which it is centred will be unchanged
- as core inflation is expected to stay low this year, MAS assesses that an accommodative policy stance remains appropriate
MAS forecasts:
- says revising the forecast range for CPI-all items inflation in 2021 to 0.5-1.5%, from −0.5 to 0.5% previously
- core inflation is forecast to rise only gradually for the rest of the year and come in at 0-1% in 2021
- says GDP this year is likely to exceed the upper end of the official 4 to 5% forecast range
- the negative e output gap in the economy will narrow through the course of this year
Full text from the statement is here:
For background to today's decision:
- Monetary policy decision due from the Monetary Authority of Singapore on Wednesday - preview
- Monetary Authority of Singapore policy meeting April 14 - preview
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Note that monetary policy in Singapore is conducted via the exchange rate, not interest rates.
- The MAS guides the Singapore dollar against a basket of currencies
- adjusts the pace of appreciation or depreciation by changing the slope, width and centre of a currency band
- The Monetary Authority of Singapore does not disclose details of the basket, the band or the pace of appreciation or depreciation.
