MAS expected to stand pat in April review despite surprise bump in February’s core inflation

PRIVATE-SECTOR economists expect the Monetary Authority of Singapore (MAS) to leave its policy parameters unchanged at the next meeting in April, even as Singapore’s core inflation rose a surprising 3.6 per cent in February.

The latest core inflation reading, which excludes accommodation and private transport, was higher than the 3.1 per cent recorded in January, data from MAS and the Ministry of Trade and Industry (MTI) showed on Monday (Mar 25). It was also above the 3.4 per cent median forecast by private-sector economists polled by Bloomberg.

Headline inflation rose to 3.4 per cent year on year, higher than the 2.9 per cent recorded the previous month and exceeding economists’ median estimate of 3.2 per cent.