Singapore’s Central Bank Tightens Monetary Policy On Inflation Risks
Industry News
Singapore’s central bank tightened its monetary policy settings on Tuesday, as global supply limits and strong economic demand raise inflationary pressures throughout the region.
The city-state’s economy is particularly vulnerable to global inflation swings, and the central bank’s swift action comes as price pressures worry policymakers across Asia.
OCBC’s head of treasury research and strategy, Selena Ling, expects the central bank to tighten again in April, calling Tuesday’s action “slight tightening.”
“If they had announced a more aggressive tightening today, expectations for April would have been lowered,” she added.
The Monetary Authority of Singapore (MAS), which manages monetary policy through exchange rate settings, said it would slightly raise the rate of appreciation of its policy band.
The width of the band, known as the Nominal Effective Exchange Rate, or NEER, and the level at which it is centered will be unchanged.
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