Global uncertainties aren't very important to the economy and monetary policy has been "vastly overrated," said Ravi Menon, managing director at Singapore's central bank.
Other factors were likely to have a larger impact on the global economy than whether the U.S. Federal Reserve raises interest rates by 25 basis points at its next policy meeting on September 20-21, Menon said at the Milken Institute's Asia Summit in Singapore on Thursday.
To be sure, Singapore's central bank, the Monetary Authority of Singapore (MAS) doesn't guide markets in quite the same way as the world's larger central banks. Because of the city-state's small size and open economy, trying to set interest rates would likely be largely ineffective.
Instead, the MAS, which has official policy-setting meetings just twice a year, sets its monetary policy by adjusting an undisclosed trading band for the currency based on a basket of currencies weighted to reflect trade levels with the city-state. The MAS may intervene if the currency moves outside its band.