(RTTNews) - Thursday, Managing Director of the Monetary Authority of Singapore, Heng Swee Keat said the current policy stance remains appropriate to support the economic recovery and ensure medium-term price stability, which in turn underpins confidence in the Singapore dollar.

Speaking at MAS’ Annual Report 2008/09 press conference, Heng said, “Given that there remain stresses in the global financial system and job markets in the major economies continue to weaken, the domestic economy is likely to witness slow and uneven growth, rather than sharp and decisive recovery.”

Heng said the recovery of the domestic economy still depends on the strength of final demand in the G3. Restating the forecasts of the Ministry of Trade and Industry, he said the Singapore economy is expected to contract between 6% and 4% in 2009.

In tandem with the weak demand and easing domestic costs, consumer price increases are expected to be muted, Heng said. For the whole of 2009, consumer price inflation is expected to come in between -0.5% and 0.5%.

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