Singapore, Jan 24 The Monetary Authority of Singapore (MAS) announced on Friday a slight easing of its monetary policy, marking the first such move since 2020 and the first adjustment in two years.
The authority said it would reduce the slope of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) policy band slightly, while maintaining the width of the policy band and the level at which it is centered.
The decision comes amid a slowdown in Singapore's economic growth momentum and faster-than-expected moderation in core inflation this year, it said.
The MAS forecasts core inflation, which excludes the costs of accommodation and private transport, to average 1.0 per cent to 2.0 per cent in 2025, while CPI-All Items inflation is projected to average 1.5 per cent to 2.5 per cent.
Singapore's core inflation, measured by the Consumer Price Index (CPI), eased to 1.8 per cent year-on-year in December, down slightly from 1.9 per cent in November, according to official data released on Thursday.
The decline was attributed to a moderation in services inflation, the Ministry of Trade and Industry and the Monetary Authority of Singapore said.
On a month-on-month basis, the core CPI rose by 0.5 per cent. The core CPI excludes private transport and accommodation costs to provide a more accurate measure of household expenses.
For the full year of 2024, core inflation averaged 2.7 per cent, a decline from 4.2 per cent in 2023.
Meanwhile, all-items inflation in Singapore held steady at 1.6 per cent year-on-year in December. The authorities noted that "lower core and accommodation inflation was offset by a milder decline in private transport costs."
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