Singapore policy tightened as inflation dents growth

The Monetary Authority of Singapore (MAS), which uses foreign exchange as its main policy tool, allowed the local currency to appreciate by re-centreing the midpoint of the policy band up to its prevailing level. It also revised up the inflation estimates this year.

SINGAPORE: Singapore’s central bank unexpectedly tightened monetary policy, its second surprise move this year, as rising inflation fanned the risk of economic contraction.

The Monetary Authority of Singapore (MAS), which uses foreign exchange as its main policy tool, allowed the local currency to appreciate by re-centreing the midpoint of the policy band up to its prevailing level. It also revised up the inflation estimates this year.