Wednesday, Oct 22, 2014Wednesday, Oct 22, 2014
Business
 

Singapore seen sticking with tight monetary policy as economy shows resilience

Published on Apr 4, 2014 10:45 AM
 
Singapore's central bank is expected to stick with a tight monetary policy stance to guard against inflationary pressures, while the economy probably maintained a solid pace of year-on-year growth in the first quarter. -- ST FILE PHOTO: KEVIN LIM 

SINGAPORE (Reuters) - Singapore's central bank is expected to stick with a tight monetary policy stance to guard against inflationary pressures, while the economy probably maintained a solid pace of year-on-year growth in the first quarter.

Forecasts from 12 analysts showed that they all expect the Monetary Authority of Singapore (MAS) to keep unchanged its stance of allowing a "modest and gradual" appreciation of the Singapore dollar.

Economists expect the MAS to stay vigilant against potential inflationary pressures stemming from a tight labour market, which is partly a result of the government's efforts to boost productivity and reduce reliance on foreign labour.

"The risk to the economy in Singapore is more inflation than growth. I think that's what will keep the MAS on hold," said Tim Condon, head of research Asia for ING.

 
If you are not a subscriber, you can get instant, unlimited access here

Videos