Singapore's central bank, the Monetary Authority of Singapore (MAS), unexpectedly implemented a second consecutive monetary tightening to address inflation risks, despite recent lower-than-expected price readings. This decision came as a surprise to analysts, with only one out of ten predicting the move, highlighting concerns over potential rises in imported costs and the impact of Middle East supply disruptions on energy prices.

Central Banking

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https://www.wsj.com/economy/central-banking/singapore-central-bank-delivers-surprise-back-to-back-tightening-04300256

Singapore Central Bank Tightens Again in Surprise Move

The central bank said imported costs are likely to rise in the coming quarters

Megan Cheah

WSJ Pro

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Logo of the Monetary Authority of Singapore (MAS). The MAS warned that inflation could rise more sharply than expected if Middle East supply disruptions drive another surge in energy prices.Photo: Edgar Su/REUTERS

SINGAPORE—Singapore’s central bank unexpectedly tightened monetary policy for the second consecutive time, though by less than in April, as it moved to contain inflation risks despite recent softer-than-expected price readings.

Monday’s tightening was forecast by just one of 10 analysts polled by The Wall Street Journal. The other nine expected the Monetary Authority of Singapore to stand pat.

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