SINGAPORE: Singapore’s central bank tweaked its monetary policy stance to favour a more gradual appreciation of the Singapore dollar, saying it now expects core inflation in 2025 to be lower than projected.

Singapore’s central bank eased its monetary policy for the first time in nearly five years, saying economic growth is likely to slow this year and inflation will stay contained.

Singapore on Friday loosened its monetary policy for the first time since 2020, citing a faster than expected decline in inflation and warning about a growth slowdown.

The last time MAS eased the pace of Singapore dollar’s appreciation in 2020 was when the economy was headed for its worst recession ever in the wake of the Covid-19 pandemic. This time around the decision comes after inflation, which had soared to its highest levels in more than a decade in 2023, dropped to a three-year low in December 2024.