Singapore GDP Q1 beats expectations, MAS removes SGD appreciation stance

Singapore GDP (YoY) Q1 came in at 1.8% (exp 1.7% prev 1.8%), while Singapore GDP SAAR (QoQ) Q1 stood at 0.0% (exp 0.0% prev 6.2%). MAS added that the economy is set to expand at a more modest pace this year.

Singaporean MAS also announced the removal of its appreciation stance on the domestic currency, setting the rate of appreciation of the SGD NEER policy band at zero percent, beginning 14 April 2016. Today's move only removes the modest and gradual appreciation path of the SGD NEER policy band that was in place, not being a policy to depreciate the domestic currency, MAS said.

MAS also added that core inflation is likely to pick up gradually in 2016, while maintaining centre and width of currency band.