In a surprise move, Singapore tightens monetary policy on inflation risks

The Monetary Authority of Singapore (MAS), which manages monetary policy through exchange rate settings, said it would slightly raise the rate of appreciation of its policy band. The width of the band, known as the Nominal Effective Exchange Rate, and the level at which it is centred will be unchanged.

SINGAPORE: Singapore’s central bank has tightened its monetary policy settings in its first out-of-cycle move in seven years, as global supply constraints and brisk economic demand elevate inflation pressures across the region.

The city-state’s trade-dependent economy is highly susceptible to swings in global inflation and the central bank’s sudden move comes as price pressures ring alarm bells for policymakers elsewhere in Asia.