






{"id":7752,"date":"2020-04-16T12:30:11","date_gmt":"2020-04-16T05:30:11","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=7752"},"modified":"2021-06-04T14:56:46","modified_gmt":"2021-06-04T07:56:46","slug":"monetary-authority-of-singapore-mas-eases-monetary-policy-amid-covid-19-outbreak","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/monetary-authority-of-singapore-mas-eases-monetary-policy-amid-covid-19-outbreak\/","title":{"rendered":"Impact of COVID-19 on economy urges Monetary Authority of Singapore to ease monetary policy"},"content":{"rendered":"<p><span class=\"TextRun SCXW115261017 BCX0\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW115261017 BCX0\" data-wac-het=\"1\">As well as reduce the midpoint of the policy band, which only last occurred in 2009 during the global financial crisis<\/span><\/span><span class=\"EOP SCXW115261017 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<figure id=\"attachment_7753\" aria-describedby=\"caption-attachment-7753\" style=\"width: 1000px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"size-full wp-image-7753\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/04\/shutterstock_1701288907.jpg\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/04\/shutterstock_1701288907.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/04\/shutterstock_1701288907-300x200.jpg 300w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2020\/04\/shutterstock_1701288907-768x512.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-7753\" class=\"wp-caption-text\">Empty Street of Singapore CBD during the lockdown due to increased rate of COVID-19 infection. tapanuth\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">According to\u00a0<\/span><a href=\"https:\/\/www.propertyguru.com.sg\/property-management-news\/2020\/3\/186990\/mas-eases-monetary-policy-amid-covid-19-pandemic\" target=\"_blank\" rel=\"noopener noreferrer\"><span data-contrast=\"none\">PropertyGuru Singapore<\/span><\/a><span data-contrast=\"auto\">,<\/span><span data-contrast=\"auto\">\u00a0the Monetary Authority of Singapore<\/span><span data-contrast=\"auto\">\u00a0(MAS)<\/span><span data-contrast=\"auto\">\u00a0has decided to ease\u00a0<\/span><span data-contrast=\"auto\">its monetary policy by lowering the\u00a0<\/span><span data-contrast=\"auto\">slope<\/span><span data-contrast=\"auto\">\u00a0of the Singapore dollar policy band to a zero rate of appreciation as the COVID-19 pandemic cont<\/span><span data-contrast=\"auto\">inue to disrupt the economy.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">MAS\u00a0<\/span><span data-contrast=\"auto\">revealed that they did keep t<\/span><span data-contrast=\"auto\">he width of the policy band\u00a0<\/span><span data-contrast=\"auto\">the same, but they have\u00a0<\/span><span data-contrast=\"auto\">resorted to reduc<\/span><span data-contrast=\"auto\">ing<\/span><span data-contrast=\"auto\"> the midpoint of the policy band, which only <\/span><span data-contrast=\"auto\">last\u00a0<\/span><span data-contrast=\"auto\">happened\u00a0<\/span><span data-contrast=\"auto\">in 2009 during the global financial crisis.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Other <\/span><span data-contrast=\"auto\">central banks typically control the monetary po<\/span><span data-contrast=\"auto\">licy\u00a0<\/span><span data-contrast=\"auto\">via\u00a0<\/span><span data-contrast=\"auto\">interest rates, but\u00a0<\/span><span data-contrast=\"auto\">MAS\u00a0<\/span><span data-contrast=\"auto\">does it\u00a0<\/span><span data-contrast=\"auto\">through exchange rate settings so the S<\/span><span data-contrast=\"auto\">i<\/span><span data-contrast=\"auto\">ngdollar can\u00a0<\/span><span data-contrast=\"auto\">descent or ascent\u00a0<\/span><span data-contrast=\"auto\">against the currencies of its primary trading partners within the S<\/span><span data-contrast=\"auto\">ing<\/span><span data-contrast=\"auto\">dollar nominal effective exchange rate\u00a0(S$NEER), an undisclosed policy band.<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/winners-of-asia-property-awards-singapore-help-the-nation-amid-covid-19-crisis\/\" target=\"_blank\" rel=\"noopener noreferrer\"><b>More: COVID-19 crisis unveils socially responsible Asia Property Awards (Singapore) winning developers<\/b><\/a><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><span data-contrast=\"auto\">MAS enables the local currency to depreciate or appreciate against the basket of currencies as long as it r<\/span><span data-contrast=\"auto\">emains in the band and only interferes when absolutely necessary.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With a more lenient\u00a0<\/span><span data-contrast=\"auto\">monetary policy, the local currency will appreciate at a slower pace compared to other currencies<\/span><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><span data-contrast=\"auto\">Meanwhile,\u00a0<\/span><span data-contrast=\"auto\">the rate of inflation will also slow\u00a0<\/span><span data-contrast=\"auto\">even though the<\/span><span data-contrast=\"auto\">re will be an increase in\u00a0<\/span><span data-contrast=\"auto\">prices\u00a0<\/span><span data-contrast=\"auto\">for<\/span><span data-contrast=\"auto\">\u00a0some imported items\u00a0<\/span><span data-contrast=\"auto\">caused by<\/span><span data-contrast=\"auto\">\u00a0the<\/span><span data-contrast=\"auto\">\u00a0supply chain delay amid the outbreak.<\/span><span data-contrast=\"auto\">\u00a0For this reason, MAS reduced its prediction for overall inflation to zero percent and for core inflation to \u20131 percent.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><span data-contrast=\"auto\">The central bank also revealed that the\u00a0S$NEER depreciated to moderately below the midpoint level of the policy band\u00a0<\/span><span data-contrast=\"auto\">because of\u00a0<\/span><span data-contrast=\"auto\">the downturn in macroeconomic conditions and\u00a0<\/span><span data-contrast=\"auto\">presumption of a weaker outlook.<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559740&quot;:276}\" data-wac-het=\"1\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>As well as reduce the midpoint of the policy band, which last happened during the 2009 global financial crisis <\/p>\n","protected":false},"author":9,"featured_media":20535,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[750,801,110],"class_list":["post-7752","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-covid-19","tag-monetary-policy","tag-singapore","news_country-singapore","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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