The move comes as the affluent city state has struggled to motor on in the face of anaemic exports, depressed external demand and low inflation - a toxic combination that has seen global policy makers scrambling to restore momentum through aggressive easings.

In its third policy easing in 15 months, the Monetary Authority of Singapore (MAS) said it will set the rate of appreciation of the Singapore dollar NEER policy band at zero percent - starting on Thursday - and shift to a neutral policy stance.

It marked the first time the MAS has moved to 'neutral'  since the global financial crisis, underscoring deteriorating world growth that has spread turmoil in asset markets in the past few months and prompted central banks from Europe to Japan to China to step up policy support.

The MAS, which manages monetary policy via changes to the exchange rate rather than interest rates because trade flows dwarf the USD 290 billion economy, previously maintained a stance of a "modest and gradual" appreciation of the Singapore dollar.

The worsening external conditions over recent months have also prompted the US Federal Reserve to signal a more measured approach to future rate increases.

The MAS eased monetary policy twice last year, once in an unscheduled policy review in January 2015.

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