4/26/2010 7:56 AM ET(RTTNews) - Singapore's Minister for Trade and Industry Lim Hng Kiang said on Monday that the adjustment to the monetary policy stance at this juncture will ensure that economic growth is sustainable going forward.
The Monetary Authority of Singapore tightened its monetary policy on April 14. Lim, who is also deputy chairman of the MAS said that this policy decision was "appropriate". Speaking in Parliament, Lim said domestic inflationary pressure is likely to pick up with rising global commodity prices and domestic costs and economic activity is already beyond pre-crisis levels.
According to Lim, it is timely to unwind the policy that was put in place during the downturn, and return to a gradual and modest appreciation of the exchange rate.
Further, Lim said the steady appreciation of the exchange rate is in line with strong economic fundamentals. He noted that the stronger exchange rate will reduce the cost of imported goods and help in preventing domestic business costs and ensure overall macroeconomic stability.
by RTT Staff Writer
