Illustrative image (Source: straitstimes)The Monetary Authority of Singapore (MAS), the country’s central bank, announced on October 14 that it will ease its monetary policy for the second time this year in an effort to foster economic growth.
The bank stated that it will continue with the policy of a modest and gradual appreciation of the Singapore Dollar Nominal Effective Exchange Rate band.
However, the rate of appreciation will be reduced slightly in order to increase the competitive edge of the country’s exports in the context that other Asian nations have depreciated their domestic currencies.
This measured adjustment follows the move to reduce the rate of appreciation of the policy band in January this year, and is supportive of economic growth in 2016, while ensuring price stability over the medium term, the bank said.
The same day, the Singaporean Ministry of Trade and Industry announced that the country’s gross domestic products (GDP) during the July-September period expanded by 0.1 percent, a reversal from the 2.5 percent contraction in the preceding quarter.
With the performance, Singapore avoided a technical recession which is identified when the GDP drops in two consecutive months.
The Singaporean Government forecast that the country’s economy will grow between 2 and 2.5 percent this year.-VNA
