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MAS sees positive momentum in economic growth
THE Monetary Authority of Singapore (MAS) sees a positive momentum in economic growth around the world, with global trade recovering, a more entrenched economic expansion in the US, recovery in domestic demand in the eurozone, and a steady growth path from China.
It reiterated the expected 1-3 per cent growth in the Singapore economy this year, with "a strong likelihood" that it would be higher than the 2 per cent registered last year. Core inflation is projected to average 1-2 per cent in 2017.
"The global economy should be able to absorb the ongoing increase in US interest rates, as the rise in rates is itself a response to strengthening economic activity," said MAS managing director Ravi Menon on Thursday, as the central bank released its annual report.
"But vigilance is still called for - economies and markets have been accustomed to low interest rates. They could be thrown off balance if rates rose faster than expected."