CONTENTS
HOME
OUR WORK - Managing Risks, Sustaining Growth
A MORE CHALLENGING POLICY ENVIRONMENT
MONETARY POLICY - PROVIDING AN ANCHOR FOR PRICE STABILITY OVER THE MEDIUM-TERM
MANAGING THE CHALLENGES OF INCREASED GLOBAL FINANCIAL UNCERTAINTY
A SOUND AND PROGRESSIVE FINANCIAL CENTRE
CURRENCY
 
A MORE CHALLENGING POLICY ENVIRONMENT 12
 
Slowing in the G3 Economies 12
 
Asia Remains Resilient 13
 
Inflation Is On The Rise Globally 13
 
Singapore Is Not Immune To Global Growth and Inflation Risks 14
 

A MORE CHALLENGING POLICY ENVIRONMENT

Global Gross Domestic Product (GDP) growth has slowed over the past few quarters, led by the downturn in the US. At the same time, inflationary pressures in many countries have picked up, driven by the acceleration in global energy and food prices. Against this backdrop, MAS shifted to a policy of a slightly steeper rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) at the October 2007 policy review. This was followed by the decision to recentre the exchange rate at the prevailing level of the S$NEER at the subsequent policy meeting in April 2008. These policy decisions are intended to be supportive of sustained non-inflationary growth over the medium-term.