Singapore tightens policy again as MAS lifts S$NEER slope
What's new: The surprise move came after 12 of 16 economists had expected no change, even as second-quarter GDP grew 5.7%.
Singapore tightened monetary policy for a second straight meeting on Monday, with the Monetary Authority of Singapore raising the rate of appreciation of its S$NEER policy band “very slightly.” The step was smaller than April’s tightening, while the width of the band and its midpoint stayed unchanged. MAS moved despite subdued recent inflation, arguing that resilient growth and rising medium-term price risks call for more restraint. The central bank pointed to stronger AI-linked activity and a firm outlook for the second half, while warning that higher oil, fuel and freight costs could feed into imported inflation. Singapore’s economy grew 5.7% in the second quarter from a year earlier.