Singapore tightens monetary policy again as inflation risks persist

Singapore’s central bank tightened monetary policy for a second consecutive time, contrary to market expectations, as inflation risks remained elevated. The Monetary Authority of Singapore said core inflation was expected to stay high through early 2027, with surging fuel prices continuing to raise business and household costs. Asst Prof Chua Yeow Hwee, from NTU’s Division of Economics, said a stronger Singapore dollar should help households cushion the impact by reducing the local-currency cost of imported energy, food and other goods. However, this would not cause prices to fall. Instead, it would moderate the pace of price increases compared with what households might otherwise face. He added that energy prices remains high and that is raising inflation and household purchasing power, so it may impact when consumers reduce spending globally, and the investments in tech will not be enough to support broader global demand.

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- Facilitated by CCO.