“Singapore’s imported energy costs have already risen,” the central bank said in a statement, noting that oil prices will likely remain elevated for some time even if supplies from the Middle East are restored. “As higher energy costs pass through supply chains worldwide, a broader range of Singapore’s import costs will increase.”
(April 14): Singapore tightened its monetary policy settings in a widely expected move, becoming the first in Asia to respond to rising inflation risks stemming from a surge in energy prices linked to the Middle East conflict.
The Monetary Authority of Singapore (MAS), which uses the exchange rate as its main policy tool rather than interest rates, said on Tuesday it would increase the slope of its policy band, as predicted by 15 of 18 economists in a Bloomberg survey. It left the width and the level at which the band is centred unchanged.
