ECONOMIC DEVELOPMENTS
AND MONETARY POLICY
     
Content Page
 
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US: Vibrant Pace . Europe: Mixed
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Box 15 – Debunking the Deflation Myth in Singapore . International Financial Markets: Broad Recovery Amid Uncertainty
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Box 16 – Exchange Rate and Macroeconomic Volatility . Monetary Policy in an Increasingly Volatile Environment
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Recent Policy Research and Analysis Against the Backdrop of More Frequent Shocks . Box 17 – Creating an Electronics Leading Index
 
Strengthening the Monetary Policy Formulation Process
 
In the context of an increasingly volatile environment, we intensified efforts to enhance the surveillance and forecasting framework for monetary policy. This includes a greater emphasis on quantitative policy analysis, which has allowed us to assess the impact of various policy options under different scenarios. We also decided to shift the schedule of our semi-annual monetary policy cycle from January/July to April/October. A review of the experience in the past two years suggested that the shift in the policy cycle would facilitate the incorporation of the fiscal impact of the annual Budget on the economy in the April review of monetary policy. It would also allow MAS to make better use of the forecast and data releases by the Ministry of Trade and Industry and Department of Statistics to assess the economic outlook and the appropriate monetary policy stance. To enhance public understanding of price developments in the economy, MAS decided to release the Inflation Monthly report on our website.
 
Enhancing Risk-focused Supervisory Approach
Box 1 – Fostering a Sound and Progressive Financial Services Sector
Enhancing MAS’ Supervisory Capabilities
Box 2 – Stress Testing of Life Insurers
Box 3 – Streamlining Inspection Function
Thematic Inspections to Improve Surveillance