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beaverjuice

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http://www.channelnewsasia.com/news/singapore/mas-to-stop-singapore/2694480.html


The move comes as a surprise as most analysts had expected the central bank to maintain its policy of allowing a modest, gradual appreciation of the Singapore dollar.



SINGAPORE: The Monetary Authority of Singapore (MAS) said on Thursday (Apr 14) that it will ease its monetary policy by not allowing the Singapore dollar to appreciate.

The move comes as a surprise as most analysts had expected the central bank to maintain its policy of allowing a modest, gradual appreciation of the Singapore dollar.

"This is not a policy to depreciate the domestic currency, and only removes the modest and gradual appreciation path of the Singapore dollar nominal effective exchange rate (S$NEER) policy band that was in place," MAS said in its half-yearly Monetary Policy Statement.

“The width of the policy band and the level at which it is centred will be unchanged,” it added.

MAS manages monetary policy by letting the Singapore dollar rise or fall against the currencies of its main trading partners within an undisclosed trading band based on its NEER.

Singapore's economy expanded by 1.8 per cent in the first quarter of this year, but growth was flat on a quarter-on-quarter basis in contrast to the 6.2 per cent growth in the previous quarter, according to advance estimates released by the Ministry of Trade and Industry on Thursday.

“The Singapore economy is projected to expand at a more modest pace in 2016 than envisaged in the October policy review. MAS Core Inflation should also pick up more gradually over the course of 2016 than previously anticipated, and is now likely to fall below 2 per cent on average over the medium term,” MAS said.

The move to a neutral policy stance of zero percent appreciation follows the steps that MAS has taken to reduce the rate of appreciation of the policy band in January and October 2015.

“The actual outcome of S$NEER movements over the six months since October 2015 has in fact been a zero percent appreciation compared to the preceding six-month period. The cumulative effects of past S$NEER movements and the new policy path will continue to ensure price stability over the medium term,” it said.

Following the central bank's announcement, the Singapore dollar weakened 0.9 per cent to S$1.3626 against the US dollar as of 8.35am, the biggest fall since November.

- CNA/cy





MAS always likes to throw a curve-ball and [email protected] SGD longists ........ longists die-pain-pain ! :(

2 take-aways
(1)  Singapore interest rates will face upward pressure.   good for savers and bad for debtors.
(2)  Short term inflation below 2% target > recession,   longer term will rise because SGD will be weaker.

"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."

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beaverjuice

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MAS surprise easing sends Singapore dollar reeling
« Reply #1 on: April 14, 2016, 01:30:59 pm »
http://www.channelnewsasia.com/news/business/mas-surprise-easing-sends/2695020.html

those with million dollar loans will feel the pinch if they haven't hedged against higher interest rates.
"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."

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beaverjuice

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Singapore Adopts 2008 Crisis Policy as Growth Grinds to Halt
« Reply #2 on: April 14, 2016, 08:43:07 pm »
http://www.bloomberg.com/news/articles/2016-04-14/singapore-economic-growth-grinds-to-halt-as-services-contract

.... underscores the severity of the downturn

... i hope they open the floodgates for FTs again .... this will help condo owners
"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."

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Hotstuff4u

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I still do not understand

So it's good or bad?


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beaverjuice

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I still do not understand

So it's good or bad?

Good if you are a loanshark like me
"A man who has depths in his shame meets his destiny and his delicate decisions upon paths which few ever reach."

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