It shifted to zero appreciation in currency last year.
According to a report from Bloomberg, Singapore’s central bank left its monetary policy unchanged after the economy contracted in the first quarter, saying the neutral stance is appropriate for an extended period of time. The Monetary Authority of Singapore, which uses the exchange rate as its main policy tool, shifted to a zero appreciation stance for the currency in April last year.
Trade-reliant Singapore lost some of its momentum in the first quarter, contracting an annualised 1.9% from the previous three months, preliminary data from the government showed. Whilst the economy is benefitting from a pick-up in exports, domestic-focussed industries such as retail and construction remain weak, giving the central bank room to keep its policy neutral.
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