Singapore Central Bank Tightens Monetary Policy for Fifth Straight Time

By Ronnie Harui

SINGAPORE--The Monetary Authority of Singapore tightened monetary policy for a fifth consecutive time to ease price pressures over the next few quarters.

Singapore's central bank will re-center the mid-point of the Singapore dollar nominal effective exchange rate policy band upward to its prevailing level, the MAS said in a statement Friday. There will be no change to the slope and width of the band, it said.

The policy shift builds on past tightening moves and will further reduce imported inflation and help curb domestic cost pressures, the MAS said. The central bank previously tightened monetary policy at semiannual reviews in October 2021 and April 2022, as well as in off-cycle decisions in January and July of this year.

The MAS will continue to closely monitor global and domestic economic developments, amid heightened uncertainty on both the inflation and growth fronts, it said.

The central bank's monetary policy is centered on Singapore's exchange rate, which it considers an effective tool for maintaining price stability in Singapore's small and open economy.

Write to Ronnie Harui at [e-mail]

(END) Dow Jones Newswires

10-13-22 2028ET