Posted on 10/29/2013 9:43:19 PM PDT by TexGrill
(Reuters) - Singapore's central bank warned that core inflation is likely to accelerate in 2014 as it stuck to its tight monetary policy stance of allowing a "modest and gradual" appreciation of the local dollar on Monday, sending the Singapore dollar higher.
The decision, which was widely expected, came as the wealthy, trade-dependent Southeast Asian city-state reported a better-than-expected 5.1 percent growth in third quarter gross domestic product from a year ago due to the continued strength in services.
The Singapore dollar, the world's 15th most actively traded currency, was quoted at 1.2450 per the U.S. dollar around 0040 GMT, compared with Friday's close of 1.2460, following the monetary policy statement and better-than-expected GDP data.
"Barring a significant deterioration in global demand conditions, the labor market will remain tight, and exert further upward pressures on MAS core inflation as firms pass on accumulated costs to consumer prices," the Monetary Authority of Singapore (MAS) said on Monday in its half-yearly policy statement.
"MAS will therefore maintain its policy of a modest and gradual appreciation of the S$NEER (Singapore dollar nominal effective exchange rate) policy band," the central bank said, adding that there will be no change to the slope of the policy band, and the level at which it is centered.
Singapore conducts monetary policy by managing the rise or fall of the local dollar against the currencies of its main trading partners.
(Excerpt) Read more at reuters.com ...
Ben, and soon to be Janet, you could learn something from the boys in Singapore.
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