Singapore central bank slightly reduces slope of SGD band

Monetary Authority of Singapore with an easing of monetary policy

• says will reduce slightly the rate of appreciation of the SGD NEER policy band
• says no change to the width of the policy band and the level at which it is centred
• this measured adjustment to the policy stance is consistent with medium-term price stability, given the current economic outlook
• says core inflation is expected to come in at the lower end of the 1-2% range in 2019, and average 0.5-1.5% in 2020
• says CPI-all items inflation is projected to be around 0.5% this year and average 0.5-1.5% in 2020
• says GDP growth is projected to come in at around the mid-point of the 0-1% forecast range in 2019 and improve modestly in 2020
• says core inflation will remain subdued in the year ahead

A policy easing from the MAS was very much expected. Although this is on the lesser end of what they could have down.