Illustrative Image (Source: thestar.com.my) Hanoi (VNA)– Singapore has decided to tighten its monetary policy for the first time insix years as part of efforts to cope with risks of global trade tension, localauthorities announced on April 13.
The Monetary Authority ofSingapore (MAS), or the centralbank, said itwould slightly increase the slope of the Singapore dollar's policy band fromzero percent previously.
The MAS managesmonetary policy through exchange rate settings, rather than interest rates,letting the Singapore dollar rise or fall against the currencies of its maintrading partners within an undisclosed policy band based on its nominaleffective exchange rate.
Thebank added that Singapore's economy should continue on a steady expansion pathin 2018, but also pointed to potential risks from a US-China trade spat.According to MAS, the escalation of the US-China trade tension will greatlyaffect the global trade.
The country’s grossdomestic product expanded 4.3 percent in the first quarter of 2018 from thesame period last year. Meanwhile, the MAS held that the country’s growth in thewhole year will be higher than forecast by 1.5-3.5 percent. Last year,Singapore’s economy grew 3.6 percent.
The central bankhas kept the appreciation rate of the Singapore dollar's policy band at zeropercent since April 2016, describing it as a "neutral" policy stance.-VNA
VNA
