MAS policy holds steady for medium-term price stability

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

The Monetary Authority of Singapore (MAS) retained the prevailing rate of appreciation of the S$NEER policy band and the width and level at which it is centred.

In its April monetary policy statement (MPS), MAS said the current monetary policy settings remains  “appropriate” and is  “needed to keep a restraining effect on imported inflation as well as domestic cost pressures, and is sufficient to ensure medium-term price stability.”

“The Singapore economy is expected to strengthen over 2024, with growth becoming more broad-based. The slightly negative output gap is projected to narrow further in H2 2024, even as underlying inflationary pressures gradually dissipate,” the MAS said.

“MAS Core Inflation is likely to remain elevated in the earlier part of the year but should stay on its broadly moderating path and step down in Q4, before falling further into 2025,” the central bank added.