Singapore poised to tighten monetary policy amid strong growth and rising inflation risks
SINGAPORE — Singapore is expected to tighten monetary policy at a scheduled review on Wednesday (Oct 7) as robust growth and inflation risks bolster the case for another move.All 10 analysts polled by Reuters expect the Monetary Authority of Singapore (MAS) to tighten policy on Oct 14.The MAS surprised markets in July by "very slightly" tightening policy, adding to a policy move in April this year.The Middle East conflict has caused significant uncertainty as tensions escalate, with oil prices rising even as talks continue between Iran and the US to reopen the Strait of Hormuz ahead of the Nov 3 US midterm elections.OCBC economist Selena Ling said there is upside risk to core inflation as a widening Middle East conflict threatens to broaden sticky price pressures across goods and services, while the threat of a "super El Nino" could further drive up food costs.The weather pattern has the potential to cause floods, droughts, extreme heat and crop losses across the world and is expected to reach peak intensity by early 2027.