Singapore relieves monetary policy, MAS warns of tariff impact on economy

Singapore on Monday relieved his monetary policy For a second consecutive time, as the urban state reported a lower than the expected GDP growth of 3.8% in the first quarter, according to Advance estimates.

Singapore’s monetary authority had ease its policy At his meeting in January and the loosening policy for the first time since 2020.

MAS said on Monday that it would reduce the rate of evaluation of its political group known as the Singapore dollar, a nominal effective exchange rate, or S $ Neer.

“MAS will continue with the policy of a modest and gradual evaluation of the S $ Neer policy group,” the statement said.

The Central Bank strengthens or weakens its currency against a basket of its main trading partners, thus effectively defining S $ Neer. The exact currency course is not set, more recently, S $ Neer can move within the range of policy, the exact levels of which are not announced.

Singapore’s three-year GDP growth missed the expectations of 4.3% of Reuters surveyed and was lower than 5% the extension observed in the last quarter of 2024.

The Ministry of Commerce and Industry of the country has lowered the GDP GDP forecast to 0% -2% in 2025, which is lower than its previous 1% -3 percent -MAS perspective also predicted a GDP growth of 0% -2% in 2025.

In a ministerial statement Earlier this month, Singapore Prime Minister Lawrence Wong said there was “no doubt” that Singapore’s growth would be significantly influenced significantly. “Singapore may or may not enter a recession this year.”

The MAS reduced inflation for the title for 2025 was reduced to an average of 0.5%-1.5%, which is lower than its previous prognosis of 1.5%-2.5%.

The main prognosis for inflation-which scatters accommodation prices and private transport-was also reduced to 0.5%-1.5%, which is lower than estimated by 1%-2%after the January meeting.