Why did MAS ease monetary policy by reducing the slope of the Singapore dollar policy band?

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MAS eased policy to stimulate Singapore’s economy after the Covid-19 shock.

MAS reduced the slope of the Singapore dollar policy band to a zero rate of appreciation because it wanted to stimulate an economy battered by the Covid-19 pandemic. It also lowered the midpoint of the band, while keeping the width unchanged, and said the move would mean the Singapore dollar appreciates at a slower rate against other currencies.
The move was tied to the Covid-19 downturn.
MAS said the economy had been battered by the pandemic, and the policy shift was meant to support recovery. The central bank also brought forward its bi-annual review from April and October to March.
The exchange-rate setting was eased further than before.
MAS cut the slope of the policy band to zero per cent appreciation and lowered the midpoint, an action last taken during the 2009 global financial crisis. The Singapore dollar nominal effective exchange rate had already fallen slightly below the midpoint as macroeconomic conditions worsened.
Inflation forecasts were lowered at the same time.
MAS cut its core inflation forecast range to -1 per cent and its overall inflation forecast to 0 per cent. It said inflation would slow even though some imported prices could rise because of supply chain disruptions during the outbreak.
The policy shift came as growth prospects weakened sharply.
Singapore’s Trade and Industry Ministry lowered its 2020 growth forecast to between -4 and -1 per cent, down from between -0.5 and 1.5 per cent. Preliminary data also showed first-quarter GDP contracted by 2.2 per cent, reinforcing MAS’s view that the economy would contract this year.

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Why did MAS ease monetary policy by reducing the slope of the Singapore dollar policy band?

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