Singapore MAS Says Property Cooling Measures Necessary
June 28 2017 - 11:14PM
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Singapore's central bank said it is not yet time to ease the
property cooling measures as interest rates remain low and
investors consider property investment as safe.
Property cooling measures are necessary, the Monetary Authority
of Singapore Chief Ravi Menon said at the media conference on
Thursday.
Releasing the annual report of the MAS, Menon said the
underlying demand for private residential properties remains firm
amidst a continued low interest rate environment. Also, investors
continue to search for yield and safety in property markets across
the world, he added.
Moreover, the calibrated adjustments by the government do not
signal the start of an unwinding of the property cooling measures,
as some commentators have suggested, the MAS said.
The property market has substantially stabilized over the last
three years, yet the risk of a renewed unsustainable surge in
property prices is not trivial, Menon cautioned.
However, amid tightening measures across the world, easing in
Singapore would send a wrong signal, he said.
The MAS forecast the city-state economy to grow 1-3 percent this
year, with a strong likelihood that growth would be higher than the
last year's 2 percent.
Menon said the current monetary policy stance remains
appropriate in view of the stable inflation and growth prospects
for 2017.
The MAS applies the exchange rate against a basket of currencies
within an undisclosed band as its monetary policy tool. At the
April meeting, the bank maintained the rate of appreciation of the
S$NEER policy band at zero percent.
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