Monetary Authority of Singapore leaves monetary policy unchanged

(the Bank manages its mon pol through the exchange rate rather than interest rates)

  • Maintains the current rate of appreciation of the $NEER policy band
  • No change to width and centre level
  • Policy stance is consistent with a modest and gradual appreciation path of the SNEER policy band that will ensure medium-term price stability.
  • MAS is revising the 2019 forecast range for mas core inflation to 1-2%, from 1.5-2.5% previously. core inflation is likely to come in near the mid-point of the revised forecast range.
  • 2019 forecast for CPI-all items inflation was revised down to 0.5-1.5% from 1-2% in February, taking into account the decline in global oil prices in late 2018. this forecast for headline inflation remains unchanged.
  • Despite some pickup in labour costs, inflationary pressures are mild and should remain contained.
  • GDP expected to come in slightly under midpoint of 1.5 - 3.5% 2019 forecast

Unchanged policy was the expected.

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At the same time, Singapore GDP data for Q1 2019

  • 2.0% q/q (vs. 1.2% expected and 1.4% prior)
  • 1.3% y/y (expected 1.5%, prior 1.9)

more to come