MAS keeps policy unchanged in January MPS

The central bank said the current policy settings remain "appropriate."

The Monetary Authority of Singapore (MAS) maintained the prevailing rate of appreciation of the S$NEER policy band, stating that the current monetary policy settings remain "appropriate."

It also retained the S$NEER's width and level at which it is centred.

"Barring any further global shocks, the Singapore economy is expected to strengthen in 2024, with growth becoming more broad-based. MAS Core Inflation is likely to remain elevated in the earlier part of the year, but should decline gradually and step down by Q4, before falling further next year." MAS stated.

Experts predict Singapore's GDP to grow 1%-3% in 2024 and its core inflation to slow to an average of 2.5%-3.5%.

"The sustained appreciation of the policy band will continue to dampen imported inflation and curb domestic cost pressures, thus ensuring medium-term price stability," MAS said.