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Singapore eases monetary policy for the first time since 2020, warns of growth slowdown

  • The Monetary Authority of Singapore has loosened its monetary policy for the first time in nearly five years, amid expectations for slower growth and easing inflation in the year ahead.
  • The central bank slightly reduced the slope of the Singapore dollar nominal effective exchange rate policy band to ensure medium-term price stability.
  • Core inflation is expected to average between 1 and 2 per cent in 2025, down from an initial forecast of 1.5 to 2.5 per cent.
  • MAS kept its headline inflation for 2025 unchanged at a forecast range of 1.5 to 2.5 per cent, as accommodation inflation is forecast to slow.
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