Singapore’s Q4 growth bolsters bets on central bank tightening

Market expectations: A services sector recovery in Singapore in the fourth quarter has bolstered expectations the central bank could tighten monetary policy as early as April, sending the local currency higher. — Reuters

SINGAPORE: Singapore’s economic growth slowed in the fourth quarter as factories lost steam, but a services sector recovery has bolstered expectations the central bank could tighten monetary policy as early as April, sending the local currency higher.

The economy expanded 3.1% in the October-December quarter from a year earlier, advance estimates from the Trade and Industry Ministry showed, slowing from the third quarter’s upwardly revised 5.4% growth, which was the fastest on-year growth in nearly four years.