At the same time, the Monetary Authority of Singapore (MAS) is keeping its Singdollar policy unchanged, maintaining the rate of appreciation of the S$NEER policy band at zero per cent, with no change to the width of the policy band and the level at which it is centred.
The trade-reliant economy grew 6.3 per cent in the third quarter from the previous three months on an annualised basis, data from the Ministry of Trade and Industry showed, much faster than the median forecast in a Reuters survey of 3.2 per cent.
The MAS referred to its comments in the October 2016 policy statement that "the neutral policy stance would be appropriate for an extended period", but did not say that the outlook remains same going forward.
"Moreover, it is only logical to expect growth to moderate against the backdrop of a normalisation in global monetary policies".
"For this reason, we are leaving our base case view unchanged at this stage for no change from the MAS in April next year as well". The MAS maintained this stance for the past two meetings, while reiterating in April the need to maintain its neutral stance for an "extended period". Basically, MAS sees growth as steady but likely to slow slightly from this year, and more importantly, headline and core inflation outlook is tipped at a modest zero to one per cent and one to 2 per cent year on year in 2018.
The Singapore dollar slipped after the MAS policy decision, and was last down 0.1 per cent on the day at 1.3540 per USA dollar.
Singapore's policy stance tracks similar postures by other central banks in the region, which are increasingly shifting away from closely tracking US monetary policy.
"They don't think they have to follow the Federal Reserve tit-for-tat", said Selena Ling, head of research and strategy for OCBC Bank, referring to the USA central bank's policy tightening bias.
Core inflation, which excludes the costs of private road transport and accommodation, is projected to come in at about 1.5 percent this year and average 1 percent to 2 percent next year, it said. "The window is open for 2018", Ling added.