Singapore reduces monetary policy for the first time since 2020 and warns of slowing down

On Friday, Singapore reduced its monetary policy for the first time since 2020, noting a faster decrease than expected in inflation and a warning of slowdown.

Singapore’s Monetary Authority said it will slightly reduce the inclination of the exchange rate policy, known as the actual nominal exchange rate of the Singapore dollar, or S $ Neer.

In its release, The Monetary Authority in Singapore said that the momentum of growth in Singapore is expected to slow down this year, and that the basic inflation was “moderate more quickly than expected.”

He added that inflation will remain less than 2% this year, “which reflects the return to low and stable price pressures in the economy.”

The main inflation rate is expected to range between 1.5% and 2.5% in 2025, compared to 2.4% in 2024.

MAS also reduced its forecast for the basic inflation rate – which excludes private residence and transportation prices – to an average of 1 % to 2 % in 2025, less than 1.5 % to 2.5 % expected in its report. Issuing monetary policy for October 2024.

The GDP growth in Singapore is expected to grow by 1% to 3% during 2025, which is slower than 4% expected in 2024.

“The impact of transformations on global trade policies can affect the local manufacturing sectors and trade -related services,” MAS wrote.

Unlike other central banks that adjust local lending prices, the Singaporean Monetary Authority changes the Singapore dollar exchange settings.

The central bank enhances its currency or weakens it against a basket of its main commercial partners, thus determining the effective exchange rate of the Singaporean dollar effectively. The exact exchange rate has not been determined, but the Sudanese national currency exchange rate (S $ Neer) can move within the specified policy, whose fine levels have not been detected.

the Singapore dollar A little weakness after the decision against the American currency, and decreased marginally to 1.3556, while the value of the city-country currency Strits Times Index Raed marginalized.