Singapore c.bank keeps monetary policy unchanged

Published: 11 Oct 2009 16:08:47 PST

SINGAPORE, Oct 12 - Singapore's central bank kept its loose monetary policy unchanged on Monday, citing uncertainty over the sustainability of the global recovery, although its economy is recovering from its worst recession.

"MAS will continue to be vigilant over developments in the external environment including the medium-term risk of stronger global inflationary pressures," the Monetary Authority of Singapore (MAS) said in a statement.

The move came as the economy expanded 0.25 percent in the third quarter of 2009 from a year earlier, returning to growth after three quarters of annual contraction, government preliminary data showed.

The Monetary Authority of Singapore sets policy by managing the Singapore dollar in a secret trade-weighted band against a basket of currencies, instead of setting interest rates.