Singapore central bank ready to intervene but says no need now

SINGAPORE, Aug 10, 2007 (AFP) – Singapore’s central bank is prepared to inject cash into the market to stabilise any fallout arising from problems in US subprime mortgages, an official said Friday. But Ong Chong Tee, deputy managing director of the Monetary Authority of Singapore (MAS), said there was no need to do so at the moment and the central bank was sticking to existing monetary policy.

“In terms of domestic market liquidity, if there are liquidity bottlenecks, certainly we will come in to inject more liquidity,” he told a media briefing.

“But at this stage, the liquidity management is unchanged in the sense that we do not see any undue problems.”

Ong said the MAS, the city-state’s central bank, “will be watching the situation closely.”

In a separate statement issued after the stock market closed, the MAS noted that the “domestic markets have generally functioned smoothly” on Friday.

“The MAS does not comment on the specifics of our market operations which continue to be directed at ensuring sufficient liquidity conditions in the money markets and banking system, taking into account the various exogenous factors that impact on liquidity,” it said.

“However, giv