Singapore Central Bank's Policy Stance Appears Appropriate to Manage Inflation

Dow Jones
Yesterday

0858 GMT - The Monetary Authority of Singapore's current policy stance appears to be in a good place to manage inflation amid a resilient economy, DBS senior economist Chua Han Teng says in an email. Headline inflation accelerated in July, rising 2.2% from a year earlier compared with June's 1.9% increase, driven mainly by the delayed pass-through of higher global energy costs. Policymakers expect domestically driven price pressures to remain contained, he notes. However, they are also wary of the risk that strong technology-led economic growth could generate stronger demand and push up wages, which may influence future monetary policy decisions.

 

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