By Xinghui Kok and Yantoultra Ngui
SINGAPORE- Singapore’s central bank on Monday left its monetary settings unchanged, as expected, as data showed the economy perked up in the third quarter though analysts are betting on a loosening in policy early next year to guard against external risks.
The Monetary Authority of Singapore (MAS) said it will maintain the prevailing rate of appreciation of its exchange rate-based policy band known as the Nominal Effective Exchange Rate, or S$NEER.
The width and the level at which the band is centered would also be maintained, the MAS said.
“The risks to Singapore’s inflation outlook are more balanced compared to three months ago,” MAS said in a statement, adding that growth momentum has picked up.
Separately, advance trade ministry data earlier showed gross domestic product (GDP) grew 4.1 percent year-on-year in the third quarter underpinned by a boost in manufacturing, accelerating from 2.9 percent in the second quarter, and policymakers expressed optimism about the 2025 outlook.
“The growth outlook is more sanguine,” said OCBC economist Selena Ling, but added that geopolitics and trade conflicts are concerns for the city state and that MAS has an opportunity to loosen policy at its next review in January. – Reuters