4/13/2018 3:21:35 PM
|written By : Team India Se|
Singapore’s central bank will allow the Singapore dollar to rise in the first tightening of its exchange rate-based monetary policy in six years.
The Monetary Authority of Singapore (MAS) explained its decision, saying Singapore’s economy is expected to continue growing steadily even as it acknowledged the danger of a trade war between the United States and China.
The MAS said it would slightly increase the slope of the Singapore dollar’s policy band from zero per cent previously, while keeping the width and mid-point of the band unchanged. “This policy stance is consistent with a modest and gradual appreciation path of the S$NEER (Nominal Effective Exchange Rate) policy band that will ensure medium-term price stability,” it explained.
“The Singapore economy is likely to remain on its steady expansion path in 2018," said the MAS. The Ministry of Trade and Industry announced a GDP growth of 4.3 per cent in the first quarter of this year -- up from 3.6 per cent in the previous quarter -- according to advance estimates.