MAS Unchanged

The MAS has left its monetary policy settings unchanged, noting that:

• "The Singapore economy is expected to see a recovery in 2021, alongside receding disinflation risk. However, the underlying growth momentum will be weak, and the negative output gap will only narrow slowly in the year ahead. MAS Core Inflation will rise gradually and turn positive in 2021, but remain well below its long-term average."
• "MAS will therefore maintain a zero percent per annum rate of appreciation of the policy band. The width of the policy band and the level at which it is centred will be unchanged."
• "As core inflation is expected to stay low, MAS assesses that an accommodative policy stance will remain appropriate for some time. This will complement fiscal policy efforts to mitigate the economic impact of COVID-19 and ensure price stability over the medium term."
• Click here for full statement.