Singapore central bank keeps monetary policy unchanged

By Thomson Reuters Apr 11, 2024 | 7:08 PM

SINGAPORE (Reuters) – Singapore’s central bank left its monetary policy unchanged on Friday, in line with expectations, as inflation and economic growth in the city-state moderated.

The Monetary Authority of Singapore (MAS) said it will maintain the prevailing rate of appreciation of its exchange rate-based policy band known as the Nominal Effective Exchange Rate, or S$NEER.

The width and the level at which the band is centred did not change.

“Current monetary policy settings remain appropriate. The prevailing rate of appreciation of the policy band is needed to keep a restraining effect on imported inflation as well as domestic cost pressures, and is sufficient to ensure medium-term price stability,” MAS said in a statement.

Gross domestic product (GDP) rose 2.7% year-on-ear in the first quarter of this year, according to advance estimates published by the trade ministry on Friday. A Reuters poll had estimated first quarter GDP growth at 2.9%.

As a heavily trade-reliant economy, Singapore uses a unique method of managing monetary policy, tweaking the exchange rate of its dollar against a basket of currencies instead of domestic interest rates like most other countries.

(Reporting by Xinghui Kok; Editing by Kanupriya Kapoor and Martin Petty)