Policy tightening amid inflation fight

Soaring prices: People buying vegetables at a market in Singapore. The authority sees core inflation averaging 2% to 3% this year. — Bloomberg

SINGAPORE: Singapore’s central bank is expected to tighten monetary policy as global inflation sweeps into the city-state, fuelled by geopolitical and supply-chain tensions and as Federal Reserve (Fed) officials remove Covid-era support.

The Monetary Authority of Singapore (MAS), which uses the exchange rate rather than interest rates to stabilise prices, will signal tomorrow that it’s seeking a stronger local dollar to buffer imported inflation, according to all 16 economists surveyed by Bloomberg.