This surprise move came in line with the central bank’s downbeat assessment for growth, projecting that Singapore’s gross domestic product (GDP) growth is projected to “moderate significantly” this year, in line with the global goods and investment cycle downturn.
Analysts do not see the Monetary Authority of Singapore (MAS) reversing its policy stance in the next scheduled monetary policy statement in October, after the central bank announced, on April 14, that it would keep monetary policy unchanged — the first pause after five consecutive rounds of policy tightening since October 2021.
At the release of its latest Monetary Policy Statement (MPS), the MAS said that it would maintain the prevailing rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, with no change to the width of the band and the level at which its policy mid-point is centred.
