The Monetary Authority of Singapore is the country's central bank:
- Will re-centre the mid-point of the S$neer policy band up to its prevailing level
- Says no change to the slope and width of the band
This is the fourth time this year the MAS have tightened policy (the MAS do so through adjusting its SGD exchange rate policy, not interest rates). Inflation in Singapore is running close to 14 year highs.
More:
- Core inflation should come in at 3.5–4.5% on average over the year, and cpi-all items inflation at 5.5–6.5%
- However, even excluding the one-off effects of the GST increase, core inflation would remain above trend at 2.5–3.5% and headline inflation at 4.5–5.5%
- Furthermore, there are upside risks to these forecasts, including from fresh shocks to global commodity prices and second-round effects associated with a prolonged period of high inflation
- MAS has assessed that, on balance, a further tightening of monetary policy is needed to help ensure that price pressures are dampened over the next few quarters
- This policy shift, building on past tightening moves, will further reduce imported inflation and help curb domestic cost pressures
- The policy stance will help dampen inflation in the near term and ensure medium-term price stability, providing the basis for sustainable economic growth
SGD rising:
