Singapore tightens the monetary policy

This month the financial authorities of Singapore will probably tighten the monetary policy for the fifth time straight. It happens because of disruptions in the global supply chain and tough labor market conditions. These disruptions provoked inflation in an Asian financial center.

The MAS now deals with policy and not with credit rates. It allows the Singapore dollar to move freely with respect to the currencies of its trading partners within the range of nominal effective exchange rate. 

The Management of the MAS the Singapore economy is most vulnerable to slowing world demand as this country is mostly export-oriented. If earlier the main fear was the risk of overheating of the economy, then as they approach 2023, the main risk is a slowdown in growth. The next monetary policy statement is expected to be released around October 14.