The geographical conflict in the Middle East continues to ferment, energy prices may remain high for a long time, and the risk of inflation is heating up. The Bank of Singapore introduced a new round of monetary tightening on Monday to counter upward pressure on inflation. The Monetary Authority of Singapore does not use interest rates as a core policy tool, but rather uses exchange rate regulation as the main instrument. The bureau announced that it will slightly raise the appreciation slope of the Singapore dollar's nominal effective exchange rate policy range, and that the fluctuation width and central axis of the exchange rate range will remain unchanged. Of the 18 analysts surveyed by the media, only 4 predicted that the HKMA would adjust the slope of appreciation steeper, 1 predicted the central axis of the adjustment range, and the remaining 13 predicted that the policy would remain unchanged. The Monetary Authority of Singapore stated in a statement: “In the coming period, pressure on imported prices may continue and spread more widely to domestic consumer prices.” Policymakers are currently weighing the knock-on effects brought about by the US-Iran conflict: on the one hand, higher oil prices are increasing inflation; on the other hand, the conflict may trigger a slowdown in the global economy; at the same time, the boom in the artificial intelligence industry is driving export growth and providing support for the economy. Singapore's economy grew 5.7% year on year in the last quarter, and the annual growth rate is expected to break through the 2% to 4% expected range previously set by the government. Meanwhile, the Trump administration has restarted imposing tariffs, and uncertainty about global trade has once again heated up. A 12.5% tariff was imposed on Singaporean goods last Friday, but the country's core electronic products and pharmaceutical products exported to the US are currently temporarily exempted. Despite rising inflation in Singapore under multiple pressures, this year's overall inflation rate was still relatively moderate. Last month's inflation rate was 1.6%, lower than the HKMA's medium-term inflation target of around 2%. “Singapore's import costs may continue to rise in the next few quarters,” the Monetary Authority of Singapore stated on Monday.

The geographical conflict in the Middle East continues to ferment, energy prices may remain high for a long time, and the risk of inflation is heating up. The Bank of Singapore introduced a new round of monetary tightening on Monday to counter upward pressure on inflation. The Monetary Authority of Singapore does not use interest rates as a core policy tool, but rather uses exchange rate regulation as the main instrument. The bureau announced that it will slightly raise the appreciation slope of the Singapore dollar's nominal effective exchange rate policy range, and that the fluctuation width and central axis of the exchange rate range will remain unchanged. Of the 18 analysts surveyed by the media, only 4 predicted that the HKMA would adjust the slope of appreciation steeper, 1 predicted the central axis of the adjustment range, and the remaining 13 predicted that the policy would remain unchanged. The Monetary Authority of Singapore stated in a statement: “In the coming period, pressure on imported prices may continue and spread more widely to domestic consumer prices.” Policymakers are currently weighing the knock-on effects brought about by the US-Iran conflict: on the one hand, higher oil prices are increasing inflation; on the other hand, the conflict may trigger a slowdown in the global economy; at the same time, the boom in the artificial intelligence industry is driving export growth and providing support for the economy. Singapore's economy grew 5.7% year on year in the last quarter, and the annual growth rate is expected to break through the 2% to 4% expected range previously set by the government. Meanwhile, the Trump administration has restarted imposing tariffs, and uncertainty about global trade has once again heated up. A 12.5% tariff was imposed on Singaporean goods last Friday, but the country's core electronic products and pharmaceutical products exported to the US are currently temporarily exempted. Despite rising inflation in Singapore under multiple pressures, this year's overall inflation rate was still relatively moderate. Last month's inflation rate was 1.6%, lower than the HKMA's medium-term inflation target of around 2%. “Singapore's import costs may continue to rise in the next few quarters,” the Monetary Authority of Singapore stated on Monday.