Illustrative image (Source: Internet) Hanoi (VNA) – Singapore’s central bank is likely to keep its monetary policystance on hold in its meeting next month as inflation eases and the growthoutlook for the export-reliant economy dims.
Accordingto the survey conducted between March 21-27, 12 out of 15 economists said theyexpect the Monetary Authority of Singapore (MAS) to leave its exchange rate-basedpolicy unchanged in April after two tightening moves last year.
EconomistJingyang Chen from HSBC said that given the moderation in core inflation,combined with the relatively broad deterioration in the growth outlook, the MASis likely to keep the policy unchanged.
TheMAS manages monetary policy by changes to the exchange rate, rather thaninterest rates, letting the Singapore dollar rise or fall against thecurrencies of its main trading partners within an undisclosed policy band basedon its nominal effective exchange rate (NEER).
Singapore’score inflation rate – a measure closely watched by central bankers – eased to anine-month low in February, while its economy grew at its slowest pace in morethan two years in the fourth quarter of 2018.-VNA
