Singapore says monetary policy remains appropriate

SINGAPORE - Singapore central bank said on Wednesday the current monetary policy remains appropriate despite market speculation of further easing at its next policy decision in October to support the slowing local economy.

The Monetary Authority of Singapore (MAS) also said that the trade-weighted Singapore dollar remains within its policy band notwithstanding increased volatility in foreign exchange markets due to China's currency devaluation. "The monetary policy stance that was announced in April 2015 remains appropriate from the perspective of overall macroeconomic conditions," the MAS said in a statement.

The central bank stands ready to curb excessive volatility in the trade-weighted Singapore dollar, it added. Earlier, the Singapore dollar hit a five-year low against the U.S. dollar.

Singapore downgraded its 2015 gross domestic product forecast on Tuesday, and analysts said growth was likely to remain tepid in the second half with the outlook clouded by risks to global economic growth.