Central Banks
Singapore Tightens Policy, Warns of Risks Even as GDP Beats
- MAS recenters currency band, as forecast by four economists
- Sees core inflation risks tilted to upside, growth to slow
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Singapore’s central bank tightened monetary policy settings for a fifth time in the past year, warning of persistent price pressures and a clouded outlook for the global and local economy.
The Monetary Authority of Singapore, which uses the exchange rate as its main policy tool, re-centered the midpoint of the currency’s policy band up to its prevailing level, according to a statement Friday. The decision follows better-than-expected economic growth last quarter, which showed signs that elevated prices and tighter financial conditions could damp demand.