No change to Singapore dollar policy says MAS

No change to Singapore dollar policy says MAS

    POSTED: 12 Apr 2013 8:30 AM

No change to Singapore dollar policy says MAS in view of Core Inflation expected at 1.5-2.5 per cent and ongoing economic restructuring.

Singapore: The Monetary Authority of Singapore is keeping its Singapore dollar policy unchanged at its half-yearly review.

In a release on Friday morning, the MAS said it will maintain its policy of a modest and gradual appreciation path of the Singapore dollar policy band, last set in October 2012.

It said that there will be no change to the slope and width of the policy band, as well as the level at which it is centred.

"This policy stance is assessed to be appropriate for containing inflationary pressures, anchoring inflation expectations, and facilitating the restructuring of the economy towards sustainable growth" said the MAS in a statement.

The move was expected by most economists with an eye on Singapore and the Singapore dollar responded with little change against the US dollar following the release of the central bank's statement.

The MAS also said in its statement that for the whole of 2013, it is lowering it forecast for Core Inflation from 2-3 per cent to 1.5-2.5 per cent, largely due to the weaker-than-expected price increases over the past few months.

The MAS noted that Core Inflation, which excludes private road transport and accommodation costs, receded to 1.5 per cent y-o-y in January-February 2013, from 2.0 per cent and 2.4 per cent in Q4 and Q3 2012..

Over the same period, CPI-All Items inflation averaged around 4 per cent.

- CNA/sf

- wong chee tat :)