Singapore Eases Policy as Economy Narrowly Avoids Recession
- Local currency gains against U.S. dollar after decision
- Services supported growth while manufacturing shrank
Singapore's New Normal: ANZ Makes Case for Low Growth
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Singapore’s central bank eased monetary policy for the second time this year as the economy narrowly avoided a technical recession, saying weakening prospects for global growth will pose "headwinds" in the coming months.
The Monetary Authority of Singapore, which uses the currency rather than interest rates as its main policy tool, said Wednesday it will reduce “slightly" the pace of appreciation in the local dollar versus those of its trading partners. Gross domestic product unexpectedly rose an annualized 0.1 percent in the three months through September from the previous quarter, when it shrank a revised 2.5 percent, the trade ministry said in a separate statement.