(Bloomberg) -- Singapore’s central bank kept key policy settings unchanged as the city-state sees a brighter economic rebound amid a firming global recovery, while saying its accommodative stance “remains appropriate.”The Monetary Authority of Singapore, which manages the exchange rate of the local dollar as its main monetary tool, held the slope, width and center of its currency band unchanged, it said Wednesday. The slope is currently 0%, a policy that implies the MAS isn’t seeking currency appreciation, which it first implemented at the outset of the pandemic last year.All 17 economists in a Bloomberg survey predicted no changes to the policy band, which the MAS uses to guide the local dollar against a trade-weighted basket of currencies. Rather than using interest rates to maintain price stability, it adjusts the slope, or pace of appreciation, as well as the width and center of that currency band. It doesn’t disclose the details of these components.“The Singapore economy will grow at an above-trend pace this year, but the sectors worst hit by the crisis will continue to face significant demand shortfalls,” the central bank said in its statement. “MAS will therefore maintain a zero percent per annum rate of appreciation of the policy band. The width of the policy band and the level at which it is centered will be unchanged. As core inflation is expected to stay low this year, MAS assesses that an accommodative policy stance remains appropriate.”The Singapore dollar gained 0.2% against the U.S. dollar to 1.3385 as of 8:25 a.m., although in trade-weighted terms the gain was about 0.1%, according to a model from Australia & New Zealand Banking Group Ltd.Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore, noted that the central bank dropped a previous reference to policy staying accommodative “for some time.”“The guidance is a nuanced calibration to a less aggressively dovish position,” he said. “In essence the MAS is shifting to a more state-dependent policy accommodation that will balance between uneven but ‘above-trend’ pace of recovery this year.”GDP GrowthThe decision was announced at the same time as government data showing gross domestic product in the first quarter grew 0.2% from a year ago, after falling 2.4% in the previous three months.On a non-annualized basis, GDP in the first quarter rose a seasonally adjusted 2.0% from the previous three months.This year’s growth is likely to exceed the upper end of the official 4%–6% forecast range, barring a setback to the global economy, the MAS said. However, the central bank said significant uncertainties remain -- including potential virus mutations and premature relaxation of social restrictions by governments -- which could derail the recovery.The fact that the authority flagged GDP above the upper end of the forecast, but didn’t give a revised range, “is potentially a less dovish/more hawkish hint going ahead for the October Monetary policy statement,” said Selena Ling, head of Treasury research and strategy at Oversea-Chinese Banking Corp. in Singapore. “The open-ended statement could also be attributable to the uncertainties pertaining to vaccination progress” and the resumption of international travel.Price PressuresCore inflation is expected to rise in coming months amid producer price pressures in major economies, the central bank said, reiterating its 0%-1% forecastfor the full year. It raised its all-items inflation forecast for the year to 0.5% to 1.5%, from a previous forecast of -0.5% to 0.5%.The MAS also left the policy settings unchanged last October, after it had taken unprecedented easing steps in March 2020. Fiscal stimulus has done much of the heavy lifting for the recovery, with the government announcing programs worth about S$100 billion ($75 billion) to support businesses and workers.More details from the first-quarter GDP report:Manufacturing expanded 7.5% in the first quarter from the same period in 2020 after growing 10.3% in the previous three monthsConstruction contracted 20.2% year-on-year in the three months through March after declining 27.4% in the fourth quarter of 2020Services industries shrank 1.2% after declining 4.7% year-on-year in the fourth quarter(Updates with chart, more details throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.