Fri, 07 May 2021

SINGAPORE, April 14 (Xinhua) -- The Monetary Authority of Singapore (MAS) on Wednesday announced that it will keep the rate of appreciation of the Singapore dollar Nominal Effective Exchange Rate (S$NEER) policy band at zero percent per annum.

The width of the policy band and the level at which it is centered will be unchanged, MAS said in its latest twice-yearly monetary policy review.

The authority said that Singapore's gross domestic product (GDP) growth this year is likely to exceed the upper end of the official 4-6 percent forecast range, barring a setback to the global economy.

The negative output gap in the economy will narrow through the course of 2021, it said.

The MAS Core Inflation, which excludes the costs of accommodation and private road transport, should rise gradually from its current subdued levels but remain below its historical average, as the negative output gap narrows, it added.

MAS reiterated that the MAS Core Inflation will come in at 0-1 percent in 2021, and it revised the forecast range for CPI-All Items inflation in 2021 to 0.5-1.5 percent, from -0.5 to 0.5 percent previously.

As core inflation is expected to stay low, MAS assesses that an accommodative policy stance remains appropriate, according to the monetary policy review.

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