MAS stands pat on monetary policy as economy slows

The government expects the economy to grow between 1.5-3.5%.

Bloomberg reports that the Monetary Authority of Singapore (MAS) has kept monetary policy settings unchanged as GDP growth slows in the export-oriented econonomy and inflation stays low.

After tightening policy twice last year, MAS has left the slope and width of the currency band unchanged, as well as the level at which it is centered, in a development that mimics similar policy moves from other central banks in Asia like India that have been pausing or mulling rate cuts in response to weakening economic conditions.  

Also read: Singapore's export and manufacturing woes spur economic slowdown in 2019

The government is projecting growth in the export-reliant economy will slow to just below the midpoint of the 1.5 to 3.5% range after a 3.2% pace in 2018. 

“The Singapore economy has slowed, and is likely to expand at a modest pace in the coming quarters,” the MAS said in a statement. “The pace of growth will be slightly below potential this year, following two years when it was above trend.”

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