Singapore Says Tighter Policy Appropriate for Rebound

Singapore’s tighter monetary policy is “appropriate” as the island’s economic recovery is becoming more entrenched, Trade Minister Lim Hng Kiang said today.

“We expect some inflationary pressures to emerge as the economy recovers,” Lim, who is also deputy chairman of the Monetary Authority of Singapore, said in response to questions in parliament today. “Wage pressures will build as the labor market tightens, while asset values could rise in tandem with the improvement in economic fundamentals,” and rising commodity prices could push up producer and consumer prices, he said.