It was the first time the Monetary Authority of Singapore (MAS) has left policy unchanged since April 2021. MAS had from October 2021 tightened monetary policy five times in a row, including in two off-cycle tightening moves last year in January and July.
Singapore joins economies such as Australia, India, South Korea and Canada that have recently paused sustained policy tightening campaigns as fresh concerns about global growth overshadow worries about persistently high inflation.
The MAS said in a statement that its previous tightening moves were “still working through the economy and should dampen inflation further”.
Maybank economist Chua Hak Bin said the balance of risks for Singapore had shifted to growth concerns despite elevated core inflation.
“Singapore’s small and open economy is starting to stagnate and feeling the full brunt of the global downturn,” he said, adding that there was a risk of Singapore slipping into a technical…
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