Specifically, the country may be trying to head off a deflationary spiral that could stagnate the economy – the Singapore central bank cut its inflation forecast to 0.5% for 2015.
“Singapore is experiencing a profound disinflation dynamic that in the absence of recovering domestic or external demand could morph into more problematic deflation,” Glenn Maguire, an economist at Australia & New Zealand Banking Group Ltd., said in the article. “We continue to assess Singapore as a growth underperformer in 2015.”
iShares MSCI Singapore ETF
For more information on Singapore, visit our Singapore category.
Max Chen contributed to this article.