Singapore tightens policy again as oil tops $100 and inflation risks build
What's new: The move defied most economists, and some now see another MAS tightening as early as October.
Singapore tightened monetary policy for a second straight time on Monday, taking a surprise step to guard against imported inflation as oil prices climb and growth stays firm. The Monetary Authority of Singapore said it would increase the rate of appreciation of the S$NEER policy band very slightly, a smaller move than in April, while leaving the band’s width and midpoint unchanged. MAS said core inflation is expected to pick up from July and stay elevated into early next year. Singapore’s core inflation reached 1.6% in June, while headline inflation was 1.9%. The economy grew 5.7% in the second quarter from a year earlier, helped by strong electronics exports tied to AI demand.