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Singapore tightens monetary policy as Iran war fuels inflation risks
MAS raised its inflation forecasts to 1.5% to 2.5% and signaled a stronger Singapore dollar as energy costs climbed after the Iran war.
- The Monetary Authority of Singapore tightened monetary policy on Tuesday for the first time since 2022, steepening the slope of its NEER policy band to allow the currency to appreciate against rising import costs.
- Following the Feb air campaign against Iran, rising energy prices and the subsequent blockade of the Strait of Hormuz disrupted essential oil and gas supplies, prompting the central bank's response.
- Preliminary government data showed Singapore's economy grew 4.6% year-on-year in the first quarter, though GDP contracted 0.3% quarter-on-quarter as MAS raised its inflation forecast to 1.5–2.5% from 1–2%.
- The government announced a support package worth nearly S$1 billion , including cash handouts and fuel vouchers to help households and businesses manage rising costs.
- Policymakers anticipate growth will slow throughout this year, and Maybank economist Chua Hak Bin noted the central bank may consider further tightening at the July meeting if inflation pressures persist.
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Singapore Leads Asia in Tightening Policy on Oil-Price Shock
(Bloomberg) — 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.
·Canada
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Singapore tightens monetary policy as Iran war fuels inflation risks
Singapore's central bank tightened its monetary policy settings on Tuesday, flagging the risk that an Iran war-fuelled energy shock could push up core inflation even as mounting pressure on growth was underscored by a first-quarter economic contraction.
·United Kingdom
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Coverage Details
Total News Sources14
Leaning Left2Leaning Right4Center5Last UpdatedBias Distribution46% Center
Bias Distribution
- 46% of the sources are Center
46% Center
L 18%
C 46%
R 36%
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