Singapore to retain monetary policy, says MAS

The Monetary Authority of Singapore noted that interest rates are market-determined and that the current monetary policy stance remained appropriate.

An MAS spokeman said the monetary policy framework was based on managing the trade-weighted exchange rate.

"This means that, given the economy's openness to capital flows, domestic interest rates are strongly influenced by global liquidity conditions," he said.


The spokesman said the Singapore dollar interest rates had been low for some time due to historically low global interest rates.

"The major economies are keeping monetary policy loose for a sustained period in the face of a weak recovery from the 2008-09 recession," he said.

He emphasized that Singapore's domestic money markets continued to function in an orderly manner and MAS has had no need to undertake any extraordinary measures.

The full story is available at Bernama.