Singapore Warning on Global Growth Is on the Money
The city-state worries about inflation but shied away from uber-hawkish steps in latest tightening.
A global warning from Singapore.
Photographer: Wei Leng Tay/BloombergInflation hawks aren't quite having things all their own way. Singapore's central bank tightened policy Friday in a relatively modest step and signaled important concerns about the health of the global economy. The city-state appears wary of moving too rapidly to tame prices.
The Monetary Authority of Singapore, which uses the exchange rate as its main tool to steer the economy, allowed the local dollar to strengthen. Such a step was widely anticipated; inflation is too high and may worsen. But the MAS also held back from more aggressive measures that would steepen the pace of currency appreciation and court a broad downdraft in growth.