Singapore's central bank cuts slope of S$NEER policy band, lowers 2015 inflation forecast

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The Monetary Authority of Singapore (MAS) on Wednesday said it would continue with the policy of a modest and gradual appreciation of the S$NEER policy band but the slope of the policy band will be reduced.

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

This measured adjustment to the policy stance is consistent with the more benign inflation outlook in 2015 and appropriate for ensuring medium-term price stability in the economy.

MAS is also revising its inflation forecasts for 2015. CPI-All Items inflation is now projected to come in at -0.5-0.5 per cent, from the 0.5-1.5 per cent expected in October. Meanwhile, MAS Core Inflation is expected to be 0.5-1.5 per cent this year, down from the earlier forecast range of 2-3 per cent.

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