By Xinghui Kok and Yantoultra Ngui

SINGAPORE (Reuters) – Singapore’s central financial institution on Monday left its financial coverage settings unchanged, as anticipated, as knowledge confirmed the economic system picked up tempo within the third quarter.

The Financial Authority of Singapore (MAS) stated it’ll keep the prevailing charge of appreciation of its change rate-based coverage band often called the Nominal Efficient Change Fee, or S$NEER.

The width and the extent at which the band is centred would even be maintained, the MAS stated.

“The risks to Singapore’s inflation outlook are more balanced compared to three months ago,” MAS stated in a press release.

“Singapore’s growth momentum has picked up and the negative output gap is projected to close in the second half of 2024.”

As a closely trade-reliant economic system, Singapore makes use of a novel technique of managing financial coverage, tweaking the change charge of its greenback in opposition to a basket of currencies as an alternative of home rates of interest like most different nations.

Individually, advance estimates from the commerce ministry confirmed gross home product (GDP) rose 4.1% within the third quarter from a 12 months earlier, after the economic system grew an annual 2.9% within the second quarter.

The commerce ministry in August adjusted its GDP progress forecast vary for 2024 to 2.0% to three.0%, from 1.0% to three.0% beforehand.

GDP progress in 2023 was 1.1%, down from 3.8% in 2022.