As price pressures show signs of easing and policymakers try to assess the impact of new U.S. tariffs on the global economy, the central bank has further eased monetary policy.

The Singapore dollar will appreciate slightly slower, and the width and midpoint of the exchange rate band will not change, the central bank said in a statement on Monday. Singapore uses exchange rates rather than interest rates as its main policy tool.

"The central bank will closely monitor global and domestic economic developments and remain vigilant to risks to inflation and economic growth," the statement said.

All 14 economists surveyed by the media expect the central bank to reduce the slope of the exchange rate band. The central bank eased monetary policy in January for the first time since 2020.

Singapore also lowered its 2025 economic growth forecast to 0-2% from 1-3% previously. Data released on Monday showed that the economy grew 3.8% year-on-year in the first quarter, compared with an expected growth of 4.5%.

"The external environment remains uncertain," the central bank said. "There are downside risks to Singapore's economic outlook, mainly due to turbulence in financial markets and a larger-than-expected decline in overseas final demand."

The Singapore dollar rose slightly after the policy decision.