安啦,龙哥照着 马照跑舞照跳 SINGAPORE – The Monetary Authority of Singapore (MAS) has refrained from easing policy, even as it warned that growth prospects for the country weakened and "is not expected to pick up significantly in 2017". Core inflation is expected to rise “only gradually” next year and averaging slightly below 2 per cent over the medium term, the central bank added in its twice-yearly Monetary Policy Statement.
The MAS said it will continue guiding the local currency at a zero appreciation stance against those of its major trading partners, with the policy band and level at which is it centred unchanged. “MAS assesses that a neutral policy stance will be needed for an extended period to ensure medium-term price stability. The current policy band provides some flexibility for the Singapore dollar nominal effective exchange rate to accommodate the near-term weakness in inflation and growth,” MAS said on Friday. The central bank’s move was in line with expectations. A poll conducted by Bloomberg found that 21 out of 24 economists had forecast no change to the monetary policy. Unlike most advanced nations, and because of its heavy dependence on exports, Singapore targets the exchange rate instead of interest rates to maintain price stability. The MAS has two scheduled policy announcements a year in April and October. The central bank has eased policy thrice in recent times. In April, it guided the local currency to a zero appreciation stance against those of its major trading partners. In 2015, it made two moves – in January and October – to allow the Singapore dollar to appreciate at a slower pace against its trading partners. In a separate announcement, the Ministry of Trade and Industry said advance estimates showed that the Singapore economy grew by 0.6 per cent on a year-on-year basis in the recently concluded third quarter, easing from the 2.0 per cent growth in the previous three months. On a quarter-on-quarter seasonally-adjusted annualised basis, the economy contracted by 4.1 per cent, a reversal from the 0.2 per cent growth in the preceding quarter.
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