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Singapore on Friday stuck to its tight monetary policy stance as expected even as GDP unexpectedly contracted in the first quarter, but lowered its inflation forecast for 2013, sending the Singapore dollar lower.
"MAS will maintain its policy of a modest and gradual appreciation of the Singapore dollar nominal effective exchange rate policy band," the Monetary Authority of Singapore (MAS) said in its half yearly monetary policy statement.
"There will be no change to the slope and width of the policy band, as well as the level at which it is centered," MAS added, saying its stance was appropriate for containing inflationary pressures.