Economists not ruling out further scheduled, off-cycle tightening moves by MAS in 2023

WITH inflation now tipped to remain elevated in the first half of 2023, economists are not ruling out further tightening moves — including off-cycle ones — by the Monetary Authority of Singapore (MAS) during the next policy meeting in April 2023.

Core inflation is expected to “remain high” in the first half of next year before before “slowing more discernibly in the second half as cost pressures gradually ease”, said the MAS in its latest monetary policy statement on Friday (Oct 14).

The central bank also narrowed its full-year inflation forecasts, with core inflation now expected to average around 4 per cent, from the forecast range of 3 to 4 per cent previously. Meanwhile, headline inflation is tipped to average around 6 per cent, from a range of 5 to 6 per cent.