Economists split on likelihood of third monetary policy easing in 2025 as Trump tariffs loom
They say that beyond monetary policy, the government may use its fiscal firepower to cushion the impact of the tariffs
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[SINGAPORE] Economists are split on whether the Republic’s central bank will further ease monetary policy in July, after having made two consecutive slight slope reductions in January and April 2025.
In a widely expected move, the Monetary Authority of Singapore (MAS) on Monday (Apr 14) said the rate of appreciation will be reduced slightly for the Singapore dollar nominal effective exchange rate (S$NEER) policy band, with no change to the width of the band or the level at which it is centred. MAS continues with the policy of a modest and gradual appreciation, it said.
Private-sector economists estimated that the slope of the band was reduced by 50 basis points to 0.5 per cent. Some argued that this leaves room to further reduce the slope this year, but others expect MAS to hold it steady.
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