Singapore's central bank eased monetary policy Friday for the first time in almost five years on expectations that inflation and economic growth will slow this year.

Singapore on Friday loosened its monetary policy for the first time since 2020, as it strives to boost growth. The Monetary Authority of Singapore said it would slightly reduce the slope of its exchange rate policy band, known as the Singapore dollar nominal effective exchange rate or S$NEER.

The Monetary Authority of Singapore forecast slower growth and contained inflation at home amid rising uncertainty from trade frictions abroad.

Singapore's key consumer price gauge rose 1.8 percent in December from a year earlier, higher than economist forecasts and the lowest in more than three years, official data showed on Thursday. The core inflation rate,