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Singapore Unexpectedly Tightens Monetary Policy

4/12/2012 10:49 PM ET

The Monetary Authority of Singapore (MAS) unexpectedly tightened monetary policy on Friday to support growth and ease core inflationary pressures.

In a statement, MAS said that it is increasing the slope of the S$NEER policy band slightly, allowing "slightly" faster appreciation of Singapore dollar. The move is expected to help anchor inflation expectations, ensure medium-term price stability, and keep growth on a sustainable path.

MAS said there will be no change to the level at which the band is centred, but it is restoring a narrower policy band.

Looking ahead, external inflationary pressures are likely to be sustained, largely due to higher oil prices, the central bank said.

by RTT Staff Writer

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