Singapore keeps monetary policy unchanged

The Monetary Authority of Singapore (MAS) on Monday decided to keep unchanged its monetary policy stance, as its economy improved in the third quarter of this year.

The central bank said it will maintain the prevailing rate of appreciation of its exchange rate-based policy band known as the Nominal Effective Exchange Rate, or S$NEER.

The width and the level at which the band is centered would also be maintained, it added.

According to the bank, the risks to Singapore’s inflation outlook are more balanced compared to three months ago, and growth momentum has picked up.

MAS also narrowed its forecast for 2024 core inflation – which excludes private accommodation and transport costs, and better reflects household expenses – to an average of 2.5% to 3%, from an earlier range of 2.5% to 3.5%. It also said that the gauge “should end the year around 2%”.

It said it expects the economy to grow at the upper end of the trade ministry’s adjusted GDP growth forecast range of 2.0% to 3.0% for 2024, but cautioned that external risks posed “significant” uncertainty for next year.

The trade ministry data earlier showed gross domestic product grew 4.1% year-on-year in the third quarter underpinned by a boost in manufacturing, accelerating from 2.9% in the second quarter, and policymakers expressed optimism about the 2025 outlook.