(MAS) is likely to reduce the slope of its FX policy band by another 50 basis points on April 14 to 0.5 percent from an estimated 1.0 percent currently. A slower growth outlook and low inflation should trigger further easing in the coming months.
In January, the MAS loosened monetary policy for the first time since March 2020, slightly reducing the slope of the SGD NEER policy band.
US President Donald Trump’s 10 percent tariff on Singapore will hurt exports, despite being the lowest rate among the country’s Asean-6 peers. The intensifying US-China trade war and a global trade slowdown due to sweeping US tariffs will weigh on Singapore’s small, open economy which is deeply connected to global supply chains.
Singapore’s inflation slid further in February; core inflation dropped to 0.6 percent annually from 0.8 percent, its lowest since mid-2021. That allows the MAS to ease monetary policy, counteracting external headwinds.
