Singapore Cuts Growth Outlook, Plans Stimulus

The video discusses the financial market's muted reaction to a downgrade, anticipated strong budget responses to COVID-19, and the potential for fiscal and monetary policy changes. It highlights expectations for a significant fiscal stimulus package and the role of the Monetary Authority in addressing economic challenges.

What was the market's reaction to the anticipated economic downgrade due to COVID-19?

• The market was completely unaffected.

• The market showed a strong positive trend.

• The market reaction was very muted.

• The market was highly volatile.

What is the expected size of the COVID-19 relief package compared to the SARS package of 2003?

• Half the size of the SARS package.

• The same size as the SARS package.

• At least double the size of the SARS package.

• Triple the size of the SARS package.

What is the anticipated budget deficit as a percentage of GDP?

• 0.5%

• 1.5%

• 2.5%

• 3.5%

What is the expected role of fiscal policy in response to the economic downturn?

• Fiscal policy will play a minor role.

• Fiscal policy will do the heavy lifting.

• Fiscal policy will be secondary to monetary policy.

• Fiscal policy will be completely ineffective.

What is the potential monetary policy action if the growth environment remains weak?

• Immediate monetary tightening.

• Complete halt of monetary policy.

• Further flattening of the senior slope.

• Increase in interest rates.