Singapore’s Growth-Inflation Quandary Set to Sharpen on Iran War

Singapore’s central bank faces a sharper growth-inflation tradeoff due to the Iran-war-driven energy shock — splitting economists on whether it will tighten again in July to counter higher import prices or stand pat to shield economic activity.

The Monetary Authority of Singapore — which uses the exchange rate rather than interest rates to guide the economy — will need to weigh a follow-up move after headline inflation in March rose at the fastest pace since September 2024. At the same time, core prices edged up to 1.7% from 1.4%, holding below the 2% level the MAS has frequently said it’s comfortable with over the medium-term.