Singapore seen sticking with tight monetary policy as economy shows resilience
Published on Apr 4, 2014 10:45 AM
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.
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