SINGAPORE: The particular Monetary Authority of Singapore (MAS) stated on Thursday (Jul 14) it would have a “further calibrated step” to tighten monetary policy amid rising inflation.
It is the fourth period since October this past year that MAS has tightened its monetary policy.
“Since October 2021, PORÉM has been on a route of gradual monetary policy tightening because of the rise in fundamental inflation and constant economic recovery, inch the authority stated.
It additional that core pumpiing is expected to rise above 4 per cent in the near term.
“Although it should relieve in Q4 2022, there is considerable doubt over the extent from the decline, ” PORÉM said.
“At the same time, the Singapore economy remains on course to expand in a creditable pace in 2022, though with slowing momentum. inch
The central bank said it would be prudent to tighten monetary policy more “so as to lean against price stresses becoming more persistent”.
MAS said it will eventually re-centre the mid-point of the Singdollar small effective exchange price (S$NEER) policy music group up to its prevailing level.
“There will be no alter to the slope and width of the music group. This policy shift, building on earlier tightening moves, should help slow the particular momentum of pumpiing and ensure medium-term cost stability, ” added the authority.
Unlike most central banks that handle monetary policy through the interest rate, the PORÉM uses the trade rate as its main policy tool. It lets the trade rate float within an unspecified policy band, and changes the slope, width plus centre of that music group when it wants to modify the pace of appreciation or devaluation of the Singapore dollar.