Singapore monetary policy stays tight as Q3 GDP beats forecast

Core inflation to accelerate in 2014.

According to a report by Reuters, Singapore's central bank warned that core inflation is likely to accelerate in 2014 as it stuck to its tight monetary policy stance of allowing a "modest and gradual" appreciation of the local dollar on Monday, sending the Singapore dollar higher.

The decision, which was widely expected, came as the wealthy, trade-dependent Southeast Asian city-state reported a better-than-expected 5.1 percent growth in third quarter gross domestic product from a year ago due to the continued strength in services.

The Singapore dollar, the world's 15th most actively traded currency, was quoted at 1.2450 per the U.S. dollar around 0040 GMT, compared with Friday's close of 1.2460, following the monetary policy statement and better-than-expected GDP data.

Read full report here.