MAS keeps S$ on appreciating path, but at slightly reduced pace

SINGAPORE'S central bank is continuing with its policy of a "modest and gradual" appreciation of the S$NEER (Singapore dollar nominal effective exchange rate) band, although the rate of appreciation will be "reduced slightly".

There will be no change to the width of the policy band and the level at which it is centred.

Said the Monetary Authority of Singapore (MAS) on Wednesday morning: "The Singapore economy is projected to expand at a modest pace in 2015 and 2016, with growth slightly weaker than earlier envisaged. MAS core inflation is expected to pick up gradually over the course of 2016 towards its historical average.

"This measured adjustment (to monetary policy) follows the move to reduce the rate of appreciation of the policy band in January this year, and is supportive of economic growth into 2016, while ensuring price stability over the medium term."

Prior to Wednesday morning's half-yearly monetary policy statement, the majority of economists had expected the Monetary Authority of Singapore (MAS) to ease its policy stance - either through a downward recentring or flattening of the policy band.