MAS tightens monetary policy for fourth time in 2022

Singapore's central bank on Friday (Oct 14) tightened monetary policy for the fourth time this year to rein in inflation running near a 14-year high.

The Monetary Authority of Singapore (MAS), at a scheduled policy meeting, said it will re-centre the mid-point of the exchange rate policy band known as the Nominal Effective Exchange Rate, or S$NEER. There will be no change to the slope and width of the band.

MAS has made two off-cycle tightening moves this year, in January and July, as inflation in the city-state remains elevated. This is the fifth round of tightening since last October.

The core inflation rate - the central bank's favoured price measure - rose to 5.1 per cent in August on a year-on-year basis. It was 4.8 per cent in July.

MAS said core inflation is likely to stay at about 5 per cent for the rest of 2022, and into early 2023.

Gross domestic product (GDP) was up 4.4 per cent in July-September on a year-on-year basis, according to advance estimates from the Ministry of Trade and Industry also released on Friday.

On a quarter-on-quarter seasonally adjusted basis, GDP expanded 1.5 per cent in July-September.

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