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'Sufficient room' for Singdollar to ease amid virus outbreak: MAS

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Although Singapore’s monetary policy stance remains unchanged, there is room within the policy band to accommodate another easing, if economic conditions weaken from the coronavirus spread.

ALTHOUGH Singapore’s monetary policy stance remains unchanged, there is room within the current policy band to accommodate another easing, if economic conditions weaken from the coronavirus spread.

This is according to the Monetary Authority of Singapore (MAS), which issued a statement on Wednesday in response to media queries.

Last October, MAS had reduced slightly the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. That was the central bank's first easing in three years.

Since then, the S$NEER has been fluctuating near the upper bound of the band, MAS said on Wednesday.

“There is therefore sufficient room in the band for the S$NEER to ease in line with any weakness in the Singapore economy in the coming months,” it added.

“MAS is monitoring economic developments closely.”

The next half-yearly monetary policy review remains as scheduled in April this year.