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Singapore's Central Bank Gets a Trigger for Tightening

  • Economists more confident of neutral stance ending this year
  • ‘Expansionary’ budget sees greater spending, delayed tax hikes
The Monetary Authority of Singapore

The Monetary Authority of Singapore

Photographer: Bryan van der Beek/Bloomberg
Updated on

Singapore’s government may have given the central bank a green light to charge ahead with monetary policy tightening this year.

Economists are more confident in their calls that the Monetary Authority of Singapore will exit its neutral stance as soon as the next scheduled decision in April. They’re encouraged after Finance Minister Heng Swee Keat said Monday that the budget position for 2018 will “remain expansionary” as Singapore incurs a small deficit amid greater spending and delayed tax increases.