SINGAPORE, April 14 (Xinhua) -- The Monetary Authority of Singapore (MAS) announced on Monday that it will slightly reduce the pace of the Singapore dollar's appreciation in response to a weakening external economic outlook.

The MAS said it will maintain its policy stance of a modest and gradual appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band. However, the rate of appreciation will be "reduced slightly." There will be no change to the width of the band or the level at which it is centered.

The decision follows the MAS's assessment that, amid a weakening global environment, Singapore's output gap is expected to turn negative.

"Consequently, imported and domestic cost pressures will remain low, and MAS Core Inflation is forecast to stay well below 2 percent. The risks to inflation are tilted towards the downside," the central bank said in a statement.

This move follows the MAS's earlier decision in January to slightly ease monetary policy, marking its first such shift since 2020. Enditem

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