Singapore may tighten policy as oil shock lifts prices
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Singapore's central bank is expected to tighten policy due to rising import costs and inflation driven by the Middle East conflict. The Monetary Authority of Singapore may adjust its settings on April 14, with 15 out of 18 economists predicting a tightening of policy.
Singapore's central bank is poised to tighten policy. The Iran war drives up import costs and threatens to push inflation beyond current projections. Fifteen out of 18 economists expect the Monetary Authority of Singapore to tighten policy at its April 14 review. The trade ministry will release the economy's performance in the first quarter. Economists expect Singapore's gross domestic product to shrink by 0.9% in the first three months. The MAS has flagged it will update its inflation outlook, a signal that could intimate a policy move. Core inflation this year is likely to be at 1.9%, according to the median in the survey. The Singapore dollar has slipped against the greenback since the war in Iran started. The geopolitical situation has shifted expectations toward a tightening bias.
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