Singapore on January 28 loosened the monetary policy in a surprise move as falling oil prices impact inflation and the central bank looks to boost the economic growth.
The Monetary Authority of Singapore (MAS) or the central bank said it would slow the appreciation of SGD against other hard currencies and lowered its inflation outlook due to the decline of global oil prices.
The information has led to the depreciation of SGD against USD. The greenback recorded its record high since August 2010 after it bought 1.3569 SGD on January 28.
Singapore uses the exchange rate as a tool to manage its monetary policy, guiding the local dollar against the currencies of its main trading partners.
According to analysts, recent drop of inflation in Singapore is the main reason for the decision of the MAS.
Consumer prices index (CPI), used to calculate inflation, fell 0.3 percent and 0.2 percent in November and December 2014 as compared to the previous year’s same period, while official figures showed the economy expanded at a slower-than-expected rate of 2.8 percent last year.
The MAS also forecast that the oil price is likely to drop or increase 0.5 percent, from a rise of 0.5-1.5 percent it had expected in October 2014.-VNA
The Monetary Authority of Singapore (MAS) or the central bank said it would slow the appreciation of SGD against other hard currencies and lowered its inflation outlook due to the decline of global oil prices.
The information has led to the depreciation of SGD against USD. The greenback recorded its record high since August 2010 after it bought 1.3569 SGD on January 28.
Singapore uses the exchange rate as a tool to manage its monetary policy, guiding the local dollar against the currencies of its main trading partners.
According to analysts, recent drop of inflation in Singapore is the main reason for the decision of the MAS.
Consumer prices index (CPI), used to calculate inflation, fell 0.3 percent and 0.2 percent in November and December 2014 as compared to the previous year’s same period, while official figures showed the economy expanded at a slower-than-expected rate of 2.8 percent last year.
The MAS also forecast that the oil price is likely to drop or increase 0.5 percent, from a rise of 0.5-1.5 percent it had expected in October 2014.-VNA
