On Tuesday, Singapore said that it had no problems with its monetary policy stance of zero appreciation for the Singapore dollar. However, it warned that it might not be possible to sustain better-than-expected second quarter growth. 

The 2009 forecast was maintained by Singapore, in which it had predicted the economy to contract by 4 to 6 percent. It said that there was possibility of the subdued recovery to continue in 2010, after the trade dependent city-state leapt out of recession in the second quarter.

The economists are of the viewpoint that the central bank, which manages monetary policy by steering the Singapore dollar against a secret basket of trade-weighted currencies, was likely to maintain policy at its next meeting in October after an easing in April.

It was forwarded by the central bank's deputy managing director Ong Chong Tee that they believe the policy remains appropriate and they will review it again in October. 

Ong continued that the central bank was keeping slightly higher liquidity in the financial system to ensure stability.