"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.
The Monetary Authority of Singapore 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.
Capital Economics markets economist Shivaan Tandon concurred, saying "the risk of keeping monetary policy too tight for too long will take center stage soon prompting the central bank to pivot".
Singapore is often seen as a bellwether for global growth as its international trade dwarfs its domestic economy.
As a heavily trade-reliant economy, Singapore uses a unique method of managing monetary policy, tweaking the exchange rate of its dollar against a basket of currencies instead of domestic interest rates like most other countries.
Persons:
Selena Ling, Shivaan Tandon
Organizations:
MAS, Monetary Authority, Capital Economics
Locations:
Singapore, Singapore's