Singapore tightens monetary policy
It’s the first country in Asia to do so in 2012.
RBS said:
Singapore has become the first country in the region to tighten monetary policy this year.
Along with a better than expected Q1 2012 advance GDP estimate and as well as an acknowledgement that inflationary pressures are panning out to be more severe than previously anticipated, the MAS has both raised the slope of SGD NEER appreciation and restored the normal narrower fluctuation band.
The move brings the official exchange rate policy back to the same configuration as in April 2010 when the band was +/-2% wide with an annualized 3% gradient.