Economic Buzz: MAS Tightens Monetary Policy

14 Apr 2022 , 09:50 AM

The Monetary Authority of Singapore, on Thursday, decided to re-centre the mid-point of the exchange rate policy band at the prevailing level of the S$NEER. Singapores central bank tightened its monetary policy for the third straight time, as global inflationary pressures and tight labor market continued to exert upward pressure on inflation. The MAS will also increase slightly the rate of appreciation of the policy band to exert a continuing dampening effect on inflation. There was no change to the width of the policy band or the level at which it was centred. This was the third policy adjustment after taking such actions in October and January. The MAS applies the exchange rate against a basket of currencies within an undisclosed band as its monetary policy tool. The bank raised its core inflation forecast to 2.5-3.5 percent this year, from the 2.0-3.0 percent expected in January. Likewise, the overall inflation outlook was lifted to 4.5-5.5 percent from the earlier range of 2.5-3.5 percent.

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