Singapore growth for Q1
- Flat (0.0%) for the q/q (seasonally adjusted)
Monetary Authority of Singapore (Singapore's central bank):
- Will set the rate of appreciation of the SGD NEER policy band at zero percent, beginning 14 April 2016
- Width of the policy band and the level at which it is centred will be unchanged
- This is not a policy to depreciate the domestic currency
- Today's move only removes the modest and gradual appreciation path of the SGD NEER policy band that was in place
- SGD NEER movements over the six months since October 2015 has in fact been a zero percent appreciation compared to the preceding six-month period
- Economy is projected to expand at a more modest pace in 2016 than envisaged in the October policy review
- MAS core inflation should also pick up more gradually over the course of 2016 than previously anticipated
- MAS core inflation is now likely to fall below 2% on average over the medium term
- Forecast for headline inflation remains unchanged
- Outlook for the global economy has dimmed since October
- In quarters ahead, subdued growth in Singapore's major trading partners will continue to pose cyclical headwinds to external-oriented sectors
- Singapore economy is likely to grow at a modest pace of 1-3% in 2016, and the level of activity will be slightly below potential
Headlines via Reuters
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MAS moving away from its appreciation preference for the SGD. USD/SGD higher today.
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ps. NEER is nominal effective exchange rate