SINGAPORE, July 31 — Singapore’s central bank left its monetary policy settings unchanged on Wednesday, maintaining a modest and gradual appreciation path for the Singapore dollar, as it flagged slowing growth in the second half of the year and contained inflationary pressures, reported Xinhua.
The Monetary Authority of Singapore (MAS) said it will keep the current rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. There were no changes to the width of the band or the level at which it is centred.
“The global and domestic economies have been resilient thus far, ” the MAS said in a statement. However, it expects Singapore’s GDP growth to ease in the second half of 2025, with output likely to fall slightly below potential. For the full year, the output gap is projected to average around 0 per cent.
The MAS noted that core inflation is expected to remain contained in the near term. It said it would continue to closely monitor global and domestic economic developments and remain vigilant to risks to inflation and growth.
In its April policy review, the MAS had already reduced the slope of the S$NEER policy band slightly, while maintaining its gradual appreciation stance. Since then, the S$NEER has strengthened toward the top of the band, amid broad-based US dollar weakness. — Bernama-Xinhua
