Rising risks of early MAS tightening in October as economy recovers

Some economists see more pipeline pressures and risks of pass-through to consumer prices, but others see normalisation to begin only next April

Annabeth Leow

Published Mon, Sep 27, 2021 · 05:50 AM

Monetary Authority of Singapore

Singapore

SINGAPORE'S central bank is not widely expected to tighten its monetary policy next month, but the chances of an earlier policy normalisation are said to be rising.

The worsening Covid-19 pandemic had in March last year led the Monetary Authority of Singapore (MAS) to announce a "double-tap easing" - tweaking both the slope and the mid-point of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.