SUBSCRIBERS

Singapore 'unlikely' to have recession after Fed hike but near-term risks remain, say economists

 Sharon See

Sharon See

Published Thu, May 5, 2022 · 07:14 PM
    • EXPECTATIONS for Singapore's monetary policy or growth trajectory were largely unshaken by Wednesday's (May 4) rate hike in the United States, and a recession looks unlikely for now -- though some economists still see a risk of a slowdown, independent of the Fed's decision.
    • EXPECTATIONS for Singapore's monetary policy or growth trajectory were largely unshaken by Wednesday's (May 4) rate hike in the United States, and a recession looks unlikely for now -- though some economists still see a risk of a slowdown, independent of the Fed's decision. AFP

    EXPECTATIONS for Singapore's monetary policy or growth trajectory were largely unshaken by Wednesday's (May 4) rate hike in the United States, and a recession looks unlikely for now - though some economists still see a risk of a slowdown, independent of the Fed's decision.

    In Singapore, interest rates should rise in tandem, but likely to a smaller extent, said economists, thanks in part to the Monetary Authority of Singapore's (MAS) three consecutive moves to tighten monetary policy over the last 6 months.

    Intent on fighting the worst inflation in 40 years, the Federal Reserve announced a 0.5-percentage point rate hike, a move the markets appeared prepared for even if this was the Federal Open Market Committee's (FOMC) largest increase since 2000.

    Copyright SPH Media. All rights reserved.