From the Monetary Authority of Singapore, the country's central bank:
- Global inflation seen easing in 2023 as major c.banks withdraw policy accommodation and supply challenges addressed
- However, global inflation outlook is subject to considerable uncertainty
- Additional strains on supply chains could cause further price shocks
- Singapore economic growth is expected to moderate further in 2023, in line with slowdown in its major trading partners
- As of now, we expect neither a recession nor a stagflation in Singapore next year"
- Effects of its four monetary policy tightening moves are still working their way through the economy and will continue to dampen inflation over the next 12 mths
- to prevent further build-up in labour cost pressures, it is important that the inflow of non-resident workers continues unimpeded
- closely monitoring any systemic risk to financial system arising from debt related stresses in corporate and household sectors
- c.bank supervisors have stepped up engagement with banks on their asset quality, including adequacy of provisioning against possible asset quality deterioration
- stress tests on balance sheets of SGX-listed firms show that most corporates would be resilient to interest rate and earnings shocks
- stress tests by mas suggest most households should be able to service their debts even under scenarios of sharp interest rate hikes and significant income losses
Also had comments on crypto regulation.
