Monetary Policy – An Anchor for Price Stability in A Strong Economy
Amidst robust and broad based economic growth, MAS has ensured that the monetary policy stance is appropriate to ensure low and stable inflation. In April and October 2006, MAS reaffirmed the policy of a modest and gradual appreciation of the Singapore Dollar Nominal Effective Exchange Rate (S$NEER) policy band adopted since April 2004.

MAS announced in our latest Monetary Policy Statement on 10 April 2007, that we would maintain the current policy of a modest and gradual appreciation of the S$NEER policy band in the period ahead, with no re-centring of the policy band, or any change to its slope or width. This policy is consistent with the continued expansion in the economy and provides the anchor of stability as the economy further reaps the benefits of the generally supportive demand- and supply-side conditions.