(Singapore) MAS leaves policy unchanged, as expected

Author: Eamonn Sheridan | Category: Central Banks

The Monetary Authority of Singapore monetary policy statement for October 2017

  • The width of the policy band and the level at which it is centred will be unchanged
  • Given the economic outlook at this stage and consistent with medium-term price stability, MAS will maintain the rate of appreciation of the S$NEER policy band at zero pct


MAS says core inflation is projected to come in at around 1.5% in 2017 and average 1-2% next year

  • Says headline inflation is expected to come in at around 0.5% this year, and stay in the range of 0-1%in 2018
  • For the rest of the year and into 2018, GDP growth in Singapore's major trading partners is expected to remain firm, but could slow slightly as the global economic recovery enters a more mature phase
  • GDP growth should stay firm in 2018, in line with potential growth, but could moderate from this year
  • GDP growth should come in at the upper half of the 2-3% forecast range in 2017

Note that in the statement today the MAS dropped its reference to its stance as being appropriate fro an 'extended period'. This was not unexpected either, a tightening in policy is increasing in probability at the next meeting (see ya in April!)