A tweak to the inflation forecast, a debate over MAS's Sing dollar policy

Singapore

THE Monetary Authority of Singapore (MAS) on Tuesday lowered its 2016 headline inflation forecast, but kept its core inflation projection unchanged - leaving economists to grapple with what this will mean for April's monetary policy statement.

Some think the central bank is now tilting towards a weaker Singapore dollar policy; others believe no revision is on the cards; and then there are those who say it is too early to make a call.

Singapore's full-year headline inflation rate is now expected at -1 to 0 per cent - lower than the previous official forecast of -0.5 to 0.5 per cent.

In a joint statement, the MAS and the Ministry of Trade and Industry (MTI) said the lower inflation projection is due to the significant step-down in global oil prices in recent months, an…