Monetary Authority of Singapore likely to maintain current stance of gradual, modest appreciation for local dollar’s nominal effective exchange rate at October review, Standard Chartered Bank economist Alvin Liew says, according to Dow Jones.

This comes after data show July CPI +3.1% on year, tad higher than 3.0% tipped by Dow Jones poll of 7 economists.

Stanchart’s Liew says widely expected growth slowdown in 2H, increasingly uncertain external environment to drive MAS decision.

“The inflation outlook in the near term would not be a factor for now in the consideration of monetary policy...Also, the MAS will need to be mindful of the fact that further SGD NEER appreciation could encourage more inflows and raise the risk of asset-price inflation,” he says in a note.

Government expects 2010 Singapore CPI to rise 2.5%-3.5%.