The first of two monetary policy decisions from the MAS for the year

  • the next meeting is in October

The MAS operate mon pol via the exchange rate, kept unchanged as was expected:

  • maintain a zero percent per annum rate of appreciation of the policy band
  • says width of the policy band and the level at which it is centred will be unchanged
  • as core inflation is expected to stay low this year, MAS assesses that an accommodative policy stance remains appropriate

MAS forecasts:

  • says revising the forecast range for CPI-all items inflation in 2021 to 0.5-1.5%, from −0.5 to 0.5% previously
  • core inflation is forecast to rise only gradually for the rest of the year and come in at 0-1% in 2021
  • says GDP this year is likely to exceed the upper end of the official 4 to 5% forecast range
  • the negative e output gap in the economy will narrow through the course of this year

Full text from the statement is here:

For background to today's decision:

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Note that monetary policy in Singapore is conducted via the exchange rate, not interest rates.

  • The MAS guides the Singapore dollar against a basket of currencies
  • adjusts the pace of appreciation or depreciation by changing the slope, width and centre of a currency band
  • The Monetary Authority of Singapore does not disclose details of the basket, the band or the pace of appreciation or depreciation.