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OUTLOOK 2025

No rush for MAS to ease monetary policy early in 2025, as uncertainty over Trump lingers

Though inflation has come down, most economists expect policy easing in April rather than January

Paige Lim

Paige Lim

Published Mon, Dec 16, 2024 · 05:00 AM
    • Economists say that Trump’s proposed tariffs in January could worsen Singapore's growth outlook or create inflationary pressures.
    • Economists say that Trump’s proposed tariffs in January could worsen Singapore's growth outlook or create inflationary pressures. PHOTO: REUTERS

    AFTER more than two years of holding steady, Singapore’s central bank is expected to start easing monetary policy in 2025. The question is when exactly.

    Core inflation is officially expected to cool to under 2 per cent – the level that the Monetary Authority of Singapore (MAS) sees as consistent with price stability – by end-2024. In October, it fell to 2.1 per cent, the lowest since 2021.

    But most economists expect policy to ease from April at the earliest, as the MAS waits to see what incoming US President Donald Trump does.

    Outlook 2025Monetary PolicyMonetary Authority of SingaporeSingapore inflationSingapore economyDonald TrumpTariffs

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