Singapore's central bank Friday unexpectedly kept its monetary policy unchanged and said it will continue to guide the local dollar on its current appreciation path, as inflation concerns trumped a contraction in the economy in the third quarter.
A tight local labor market, which is likely to push consumer prices higher, and the potential for global food prices to rise, were behind the Monetary Authority of Singapore's decision to keep a tight rein on policy, the central bank said in a statement.
Singapore's gross domestic product shrank by 1.5% in the July-September period from the previous quarter, the Ministry of Trade and Industry said, on weak performance by electronics manufacturing. Full story
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