Growth won't pick up significantly in 2017; mid-term core inflation seen slightly below 2%: MAS

SINGAPORE'S central bank on Friday tempered its expectations of inflation and growth for the country's economy in 2017.

In its October monetary policy statement, the Monetary Authority of Singapore (MAS) said that "over the medium term, core inflation is still expected to trend towards but average slightly below 2 per cent". Core inflation is a key monetary policy consideration for the MAS.

It also added that "growth in the Singapore economy has weakened and is not expected to pick up significantly in 2017."

These assessments come after MAS managing director Ravi Menon said in July that MAS sees core inflation as trending towards its "historical average of close to 2 per cent." Mr Menon was making these remarks at a media briefing for the MAS Annual Report 2015/2016.

Overall, growth in the Singapore economy is projected to take a step-down in H2 2016 from the 2.0 per cent recorded in H1, and full-year GDP growth is likely to come in at the lower end of the 1-2 per cent forecast range. Growth is expected to be only slightly higher in 2017.