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Singapore

SINGAPORE ECONOMY
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'Hawkish' MAS takes action on rising prices

Watchers say that its latest decision to tighten the currency policy also signals confidence in an economic rebound

Annabeth Leow

Annabeth Leow

Published Fri, Oct 15, 2021 · 05:50 AM
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Singapore

SINGAPORE'S central bank kick-started regional policy normalisation on Thursday (Oct 14), as it moved to "raise slightly the slope" of the Singapore dollar nominal effective exchange rate (S$NEER) policy band, up from a flat or "zero" slope before.

The decision, which caught many bank economists off guard, is not expected to stave off elevated core inflation in the short run. But it opens the door to more tightening in 2022, and could result in the Singdollar (SGD) making stronger gains in the year ahead.

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