You are here

MAS eases monetary policy, flattens S$ policy band

Thursday, April 14, 2016 - 08:10

mas.jpg
Singapore's central bank surprised the market on Thursday morning with an easing stroke, moving to a neutral policy stance of zero per cent appreciation of the S$NEER (Singapore dollar nominal effective exchange rate) band.

SINGAPORE'S central bank surprised the market on Thursday morning with an easing stroke, moving to a neutral policy stance of zero per cent appreciation of the S$NEER (Singapore dollar nominal effective exchange rate) band.

"This is not a policy to depreciate the domestic currency, and only removes the modest and gradual appreciation path of the S$NEER policy band that was in place," said the Monetary Authority of Singapore in its half-yearly policy statement.

The width of the policy band and the level at which it is centred will be unchanged.

"The actual outcome of S$NEER movements over the six months since October 2015 has in fact been a zero percent appreciation compared to the preceding six-month period. The cumulative effects of past S$NEER movements and the new policy path will continue to ensure price stability over the medium term," added the central bank.

sentifi.com

Market voices on:

Prior to Thursday morning's half-yearly monetary policy statement, the bulk of economists had expected MAS to leave its monetary policy stance unchanged.

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom