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Economy

Singapore central bank eases policy as coronavirus recession looms

Deflationary pressure sweeps Asia, with pandemic hitting demand and jobs

Economists had expected the bank to ease policy to limit economic fallout from the coronavirus.   © Reuters

SINGAPORE -- Singapore's central bank on Monday eased its monetary policy in response to the new coronavirus pandemic, following regional peers that have rushed to cut rates and cushion the severe blow to their economies.

The city-state's monetary policy is based on exchange rates, whereby the Singapore dollar is managed against a basket of major trade partners' currencies. This time, the central bank reduced its target appreciation rate to 0%, while re-centering the exchange rate band downward based on the prevailing rates.

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