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Singapore Central Bank Loosens Monetary Policy

Singapore central bank eased its monetary policy on Monday, to mitigate the economic impact of coronavirus, or COVID-19.

The central bank will adopt a zero percent per annum rate of appreciation of the policy band starting at the prevailing level of the S$NEER. There will be no change to the width of the policy band.

"This policy decision hence affirms the present level of the S$NEER, as well as the width and zero percent appreciation slope of the policy band going forward, thus providing stability to the trade-weighted exchange rate," the bank said in a statement.

The MAS applies the exchange rate against a basket of currencies within an undisclosed band as its monetary policy tool.

The Covid-19 pandemic has led to a severe contraction in economic activity both in Singapore and globally. The city-state is set enter a recession this year, with GDP growth projected at -4 to -1 percent, the bank said.

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