MAS: Annual report 2006 / 2007
CONTENTS
HOME
 
ENTERPRISE: Our Role
BUILDING ON A ROBUST MACROECONOMIC ENVIRONMENT
DEVELOPMENTS IN THE SINGAPORE SECURITIES MARKET
FOSTERING A SOUND & REPUTABLE FINANCIAL CENTRE
RISK MANAGEMENT & INFRASTRUCTURE
GROWING SINGAPORE AS AN INTERNATIONALLY COMPETITIVE FINANCIAL CENTRE
CURRENCY
ORGANISATIONAL INITIATIVES
ENTERPRISE: Our Role
BUILDING ON A ROBUSTMACROECONOMIC ENVIRONMENT 14
The World Economy: A Fourth Consecutive Year Of Robust Global Growth 14
Box 1 -Economic and Financial Integration in East Asia 15
International Financial Markets: A Cautionary Note Against Abundant Liquidity 17
Strong Capital Inflows Make Asia Vulnerable To Shifting Risk Appetites 19
The Singapore Economy: Sustained and Broad-based Strength 20
Growth was Broad-based Across Key Sectors of the Economy 21
Labour Market Conditions Continued to Strengthen 21
Inflatio nary Pressures Remain Largely Contained,  
  In Part Reflecting the Effects of Globalisation 21
Monetary Policy - An Anchor for Price Stability in A Strong Economy 23
Strengthening the Monetary Policy Formulation Process 23
Pushing the Frontier of Monetary Policy Research and Analysis 23
Box 2 - Enhancing Liquidity Management: The MAS Standing Facility 24
 

Strengthening the Monetary Policy Formulation Process
In keeping with the move towards greater transparency and clarity in monetary policy, MAS has continued to enhance our communications with the media, the market and the public. Recent issues of the Macroeconomic Review, through which the MAS communicates our basis for the monetary policy stance, highlighted various studies by MAS staff which have policy implications. These included assessments on the impact of a GST rate increase on CPI inflation, adjustments in the labour market over the business cycle, as well as a number of other technical studies. Since April 2006, MAS has also released ex post weekly data on the Singapore dollar nominal effective rate (S$NEER) index on the MAS website, and in the Statistical Appendix of the Macroeconomic Review. The S$NEER series starts in January 1999, and is updated every six months in conjunction with the release of the Macroeconomic Review.