Singapore’s central bank head says fight against inflation not over yet

Managing Director of the Monetary Authority of Singapore (MAS) Menon says the fight against inflation is not yet over. Comments from Menon and the MAS’ reprot

  • Growth will remain weak in the near term
  • MAS not switching
    from inflation-fighting mode to growth-supporting mode
  • Singapore
    well-positioned for a second GST hike in 2024 if inflation falls to
    2.5%-3% in q4
  • MAS lowers forecast
    range for 2023 headline inflation to 4.5% to 5.5%, vs previous 5.5%
    to 6.5%
  • Singapore should see
    further reductions in inflation by year-end
  • Singapore’s growth
    prospects have dimmed, economy to operate slightly below underlying
  • MAS recorded net
    loss of S$30.8 bln for FY 22/23, reflecting effects of monetary policy
  • MAS stands ready to
    provide liquidity to ensure Singapore’s financial system remains stable
  • Core inflation
    expected to end the year significantly lower at 2.5% to 3.0%
  • Monetary policy
    steadfastly focused on medium-term price stability
  • 2023 GDP growth is projected at the midpoint of 0.5% to 2.5% range,
    moderating from 3.6% in 2022

The Monetary Authority of Singapore, the country’s central bank, left its monetary policy unchanged after five rounds of
tightening since October 2021, including two off-cycle moves.

This article was written by Eamonn Sheridan at Source