SINGAPORE: Singapore's central bank loosened its monetary policy for the second time this year on Monday, as had been expected, saying prospects for global growth and trade have dimmed, and the Trade Ministry cut its growth forecast for the city-state.
The Monetary Authority of Singapore said it will slightly reduce the prevailing rate of appreciation of its exchange rate-based policy band known as the Nominal Effective Exchange Rate, or S$NEER.
The width and the level at which the band is centred were unchanged, it said.
Analysts polled by Reuters had expected the MAS to loosen monetary policy by reducing the slope of the band in which it allows the S$NEER to trade.
"Given Singapore’s high trade dependency and deep integration with global supply chains, slowing global and regional trade as well as heightened policy uncertainty will weigh on the external-facing sectors, which could spill over into the domestic-oriented sectors," the MAS said.
Separate data showed the economy grew 3.8% in the first quarter from a year earlier, slowing from an expansion of 5.0% in the fourth quarter.
The Trade Ministry on Monday downgraded Singapore’s GDP growth forecast for 2025 to 0% to 2% from the previous range of 1% to 3%. - Reuters
