MAS tightens monetary policy, re-centres mid-point of S$NEER

SINGAPORE : Singapore’s central bank on Friday tightened monetary policy for the fourth time this year to rein in inflation running near a 14-year high.

The Monetary Authority of Singapore (MAS), at a scheduled policy meeting, said it will re-centre the mid-point of the exchange rate policy band known as the Nominal Effective Exchange Rate, or S$NEER. There will be no change to the slope and width of the band.

MAS has made two off-cycle tightening moves this year, in January and July, as inflation in the city-state remains elevated. This is the fifth round of tightening since last October.

The core inflation rate — the central bank’s favoured price measure – rose to 5.1 per cent in August on a year-on-year basis. It was 4.8 per cent in July.

MAS said core inflation is likely to stay at about 5 per cent for the rest of 2022, and into early 2023.

Gross domestic product (GDP) was up 4.5 per cent in July-September on a year-on-year basis, according to advance estimates from the Ministry of Trade and Industry also released on Friday.

On a quarter-on-quarter seasonally adjusted basis, GDP expanded 1.5 per cent in July-September.

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