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