Singapore Tightens Policy Again as Brent Tops $100 and Inflation Risk Builds
Updated
Updated · CNBC · Jul 27
Singapore Tightens Policy Again as Brent Tops $100 and Inflation Risk Builds
3 articles · Updated · CNBC · Jul 27
Summary
The Monetary Authority of Singapore tightened policy for a second straight meeting, slightly increasing the appreciation rate of the Singapore dollar's exchange-rate band while leaving its width and center unchanged.
Brent crude's move back above $100 a barrel after Red Sea tanker attacks and the collapse of a Middle East ceasefire drove the pre-emptive step, as Singapore relies heavily on imported energy.
Core inflation edged up to 1.6% in June from 1.4% in May, with headline inflation at 1.9%; MAS said imported-cost pressures could still feed through with a lag despite softer services prices.
The move came even as domestic growth stayed firm: second-quarter GDP rose 5.7% from a year earlier, beating the 5.5% Reuters estimate and the government's 2%-4% full-year forecast range.