Singapore’s central bank strengthens its monetary policy in response to inflation concerns heightened by the Iran conflict
Singapore Central Bank Adjusts Monetary Policy Amid Inflation Concerns
On Tuesday, Singapore's central bank announced a tightening of its monetary policy, citing the possibility that an energy crisis triggered by conflict in Iran could drive core inflation higher. This move comes as the country faces increasing economic challenges, highlighted by a contraction in the economy during the first quarter.
The Monetary Authority of Singapore (MAS) revealed plans to slightly boost the rate at which the Singapore dollar nominal effective exchange rate (S$NEER) policy band appreciates, a decision that aligns with the expectations of most analysts surveyed by Reuters. MAS confirmed that the band’s width and midpoint would remain unchanged.
According to MAS, Singapore’s economic growth is expected to decelerate throughout the year, while inflation risks remain elevated.
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