Monetary Authority of Singapore should be vigilant on deflation, adjust policy if needed, IMF says

SINGAPORE (Reuters) - The Monetary Authority of Singapore (MAS) should remain on guard against signs of deflation and adjust its policy settings further if needed, the International Monetary Fund said on Tuesday.

"Although inflation is on track to reach a stable medium-term level of under two percent by the end of 2017 in the baseline, the MAS should remain vigilant to signs of deflation and adjust its policy settings further if needed," the IMF said in a staff statement after an Article IV mission to Singapore.

Against a backdrop of low inflation and lacklustre economic growth, the MAS eased monetary policy in April by removing the "modest and gradual" appreciation path of the Singapore dollar, in its third policy easing since January 2015.

(Reporting by Masayuki Kitano; Editing by Kim Coghill)