Arabic version: سنغافورة تشدد سياستها مجدداً مع تصاعد مخاطر النفط

According to Cnbc, Singapore’s monetary authority unexpectedly tightened policy for a second consecutive time, responding preemptively to renewed oil-price pressures despite subdued domestic inflation. The Monetary Authority of Singapore will increase the rate of appreciation of the Singapore dollar’s nominal effective exchange rate policy band “very slightly,” a smaller adjustment than in April.

The central bank left the band’s width and its centre unchanged. Economists surveyed by Reuters had expected no change. Rather than setting interest rates, the MAS manages the Singapore dollar against a trade-weighted basket of currencies within an undisclosed policy band.

Singapore’s core inflation, which excludes accommodation and transportation costs, rose to 1.6% in June from 1.4% in May. It remained near the lower end of the MAS forecast range of 1.5% to 2.5% for the year, while headline inflation was 1.9%. BMI, a FitchSolutions company, said higher transportation fuel prices following the U.S.-Iran conflict were partly offset by softer services inflation, including healthcare, communication and education.

Singapore is highly exposed to oil-price gains because it relies almost entirely on imported energy. Brent crude rose above $100 a barrel last week after Houthi militants attacked two Saudi tankers in the Red Sea, increasing supply concerns after the collapse of the Middle East ceasefire. BMI said imported-cost pressures generally feed through to wider consumer prices with a lag.

The economy has remained resilient, supported by AI-driven electronics exports. Gross domestic product grew 5.7% in the second quarter from a year earlier, exceeding the 5.5% median Reuters survey estimate and the government’s full-year growth projection of 2% to 4%.