Why is sgd appreciation

Singapore's economy could pick up further in the coming quarters as the government eases Covid restrictions and opens up for international travel , said Song. Alex Holmes, Asia economist at Capital Economics, said he expects the Singapore central bank to leave monetary policy on hold in Holmes said in a Thursday note that Covid-related economic weakness is still evident in Singapore. He noted that wholesale, retail and transport sector shrank 1. Skip Navigation. Key Points.

The Monetary Authority of Singapore — the country's central bank — tightened monetary policy in a surprise move on Thursday. It raised slightly the slope of its currency band, while keeping unchanged the width of the band and the level at which it is centered.

Growth in the Singapore economy is likely to remain above trend in the quarters ahead. VIDEO The MAS' mandate is to maintain price stability, so its job is to ensure that residents are not shocked by sudden increases or decreases in prices, he added. The Singapore dollar has been volatile in the past several weeks, along with global financial markets. The currency hit a low of 1. The Singdollar traded marginally lower at around 1. Associate Professor Lawrence Loh at the National University of Singapore Business School said that "the depreciation of the Singapore dollar will make imported goods more expensive but this can be mitigated by higher economic growth and higher consumer spending power".

Its previous forecasts for both indicators was 0. This comes after core inflation in February fell into negative territory for the first time in a decade as as the pandemic's damage to demand outweighs price pressures from supply disruptions. The MAS said core inflation is likely to remain below its historical average in the near and medium term as "there is significant uncertainty over the depth and duration of this recession.

The Ministry of Trade and Industry MTI announced the sharp GDP growth downgrade last Thursday saying the economy will shrink amid mounting border controls and lockdowns around the world and a sharp pull back in domestic consumption.

The midpoint of the forecast range, 2. The lower end of the estimate, if it materialises, is only compared to a 3. This is the second downgrade for GDP growth in over a month.

The last estimate was Sign Up. Read more. Consumer prices rose 0. Non-oil domestic exports NODX grew The economy expanded 6. Major Economies. South-Eastern Europe. Sub-Saharan Africa. Central America. Monetary and Financial Sector.