No change in monetary policy: MAS

SINGAPORE - The policy of a ""modest and gradual" appreciation of the Singapore dollar remains unchanged, said the Monetary Authority of Singapore in its six-monthly policy statement on Tuesday morning.

This policy is deemed to be appropriate for containing domestic and imported sources of inflation, the MAS said. The policy has been in place since April 2012.

The MAS said that the Singapore economy is projected to grow at a moderate pace for the rest of 2014 and in 2015.

Core inflation is likely to remain firm, given cost pressures from the tight labour market and higher prices of food imports from the region.

MAS' policy statement sets the tone for how the currency will perform for the next six months. The Singdollar was trading at around $1.27 to the greenback.

Private-sector economists have been expecting the MAS to stick to its current policy stance.

The three-month Singdollar Sibor interest rate has remained steady at around 0.41 per cent. Many home loans are pegged to this rate.

sushyan@sph.com.sg